Establishment Labs Holdings Inc. (NASDAQ:ESTA), is not the largest company out there, but it led the NASDAQCM gainers with a relatively large price hike in the past couple of weeks. While good news for shareholders, the company has traded much higher in the past year. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. But what if there is still an opportunity to buy? Let’s examine Establishment Labs Holdings’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

What Is Establishment Labs Holdings Worth?

According to our valuation model, Establishment Labs Holdings seems to be fairly priced at around 4.5% below our intrinsic value, which means if you buy Establishment Labs Holdings today, you’d be paying a fair price for it. And if you believe that the stock is really worth $41.53, then there’s not much of an upside to gain from mispricing. In addition to this, Establishment Labs Holdings has a low beta, which suggests its share price is less volatile than the wider market.

Check out our latest analysis for Establishment Labs Holdings

Can we expect growth from Establishment Labs Holdings?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. With profit expected to grow by 62% over the next couple of years, the future seems bright for Establishment Labs Holdings. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

What This Means For You

Are you a shareholder? ESTA’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping an eye on ESTA, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

So if you'd like to dive deeper into this stock, it's crucial to consider any risks it's facing. At Simply Wall St, we found 1 warning sign for Establishment Labs Holdings and we think they deserve your attention.

If you are no longer interested in Establishment Labs Holdings, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.