Today we're going to take a look at the well-established TopBuild Corp. (NYSE:BLD). The company's stock received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$420 at one point, and dropping to the lows of US$347. 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 TopBuild's current trading price of US$376 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 TopBuild's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

What's The Opportunity In TopBuild?

Good news, investors! TopBuild is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is $475.56, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. What's more interesting is that, TopBuild's share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. 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 TopBuild 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. 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 a double-digit 12% over the next couple of years, the outlook is positive for TopBuild. 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? Since BLD is currently undervalued, it may be a great time to increase your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation.

Are you a potential investor? If you've been keeping an eye on BLD for a while, now might be the time to enter the stock. Its buoyant future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy BLD. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

If you want to dive deeper into TopBuild, you'd also look into what risks it is currently facing. At Simply Wall St, we found 1 warning sign for TopBuild and we think they deserve your attention.

If you are no longer interested in TopBuild, 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.