Let's talk about the popular Marvell Technology, Inc. (NASDAQ:MRVL). The company's shares received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$126 at one point, and dropping to the lows of US$87.65. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Marvell Technology's current trading price of US$91.82 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Marvell Technology’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Marvell Technology

Is Marvell Technology Still Cheap?

According to our valuation model, the stock is currently overvalued by about 33%, trading at US$91.82 compared to our intrinsic value of $68.89. This means that the opportunity to buy Marvell Technology at a good price has disappeared! But, is there another opportunity to buy low in the future? Since Marvell Technology’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of Marvell Technology look like?

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. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. In Marvell Technology's case, its revenues over the next couple of years are expected to double, indicating an incredibly optimistic future ahead. If expense does not increase by the same rate, or higher, this top line growth should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? MRVL’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe MRVL should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on MRVL for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for MRVL, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

If you want to dive deeper into Marvell Technology, you'd also look into what risks it is currently facing. You'd be interested to know, that we found 2 warning signs for Marvell Technology and you'll want to know about them.

If you are no longer interested in Marvell Technology, 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.