While Appen Limited (ASX:APX) might not have the largest market cap around , it received a lot of attention from a substantial price increase on the ASX over the last few months. The company's trading levels have reached its high for the past year, following the recent bounce in the share price. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. But what if there is still an opportunity to buy? Today we will analyse the most recent data on Appen’s outlook and valuation to see if the opportunity still exists.

Check out our latest analysis for Appen

What's The Opportunity In Appen?

Good news, investors! Appen is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is A$3.63, but it is currently trading at AU$2.33 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Appen’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

What does the future of Appen 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. Appen's earnings over the next few years are expected to increase by 98%, 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 APX 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 APX 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 APX. 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.