Is It Time To Consider Buying PagerDuty, Inc. (NYSE:PD)?

PagerDuty -1.15% Post

PagerDuty

PD

20.72

20.72

-1.15%

0.00% Post

While PagerDuty, Inc. (NYSE:PD) might not have the largest market cap around , it saw a decent share price growth of 18% on the NYSE over the last few months. The recent rally in share prices has nudged the company in the right direction, though it still falls short of its yearly peak. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, what if the stock is still a bargain? Let’s examine PagerDuty’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

Check out our latest analysis for PagerDuty

What's The Opportunity In PagerDuty?

Great news for investors – PagerDuty is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $32.79, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. PagerDuty’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach its true value, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range.

Can we expect growth from PagerDuty?

earnings-and-revenue-growth
NYSE:PD Earnings and Revenue Growth December 30th 2023

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. 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. PagerDuty's earnings over the next few years are expected to increase by 63%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? Since PD is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic 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 PD for a while, now might be the time to make a leap. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy PD. 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 PagerDuty, you'd also look into what risks it is currently facing. While conducting our analysis, we found that PagerDuty has 2 warning signs and it would be unwise to ignore these.

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

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