LivaNova PLC (NASDAQ:LIVN), might not be a large cap stock, but it received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$57.80 at one point, and dropping to the lows of US$45.80. 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 LivaNova's current trading price of US$48.13 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at LivaNova's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for LivaNova

What Is LivaNova Worth?

According to my valuation model, LivaNova seems to be fairly priced at around 6.55% above my intrinsic value, which means if you buy LivaNova today, you'd be paying a relatively reasonable price for it. And if you believe the company's true value is $45.17, there's only an insignificant downside when the price falls to its real value. In addition to this, LivaNova has a low beta, which suggests its share price is less volatile than the wider market.

What kind of growth will LivaNova generate?

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. LivaNova's earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has already priced in LIVN's positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the financial strength of the company. 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 LIVN, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook 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.

If you'd like to know more about LivaNova as a business, it's important to be aware of any risks it's facing. At Simply Wall St, we found 1 warning sign for LivaNova and we think they deserve your attention.

If you are no longer interested in LivaNova, 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.