e.l.f. Beauty, Inc. (NYSE:ELF) led the NYSE gainers with a relatively large price hike in the past couple of weeks. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company's outlook is already priced into the stock. However, what if the stock is still a bargain? Let's take a look at e.l.f. Beauty's outlook and value based on the most recent financial data to see if the opportunity still exists.

What Is e.l.f. Beauty Worth?

The stock is currently trading at US$200 on the share market, which means it is overvalued by 35% compared to our intrinsic value of $148.57. This means that the opportunity to buy e.l.f. Beauty at a good price has disappeared! But, is there another opportunity to buy low in the future? Given that e.l.f. Beauty's share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of e.l.f. Beauty 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 70% over the next couple of years, the future seems bright for e.l.f. Beauty. 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? It seems like the market has well and truly priced in ELF's positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe ELF 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 tabs on ELF for some time, 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 positive outlook is encouraging for ELF, which means it's worth diving deeper into other factors in order to take advantage of the next price drop.

If you'd like to know more about e.l.f. Beauty as a business, it's important to be aware of any risks it's facing. In terms of investment risks, we've identified 2 warning signs with e.l.f. Beauty, and understanding them should be part of your investment process.

If you are no longer interested in e.l.f. Beauty, 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.