While Rotork plc (LON:ROR) might not have the largest market cap around , it saw significant share price movement during recent months on the LSE, rising to highs of UK￡3.62 and falling to the lows of UK￡3.10. 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 Rotork's current trading price of UK￡3.10 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 Rotork’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

View our latest analysis for Rotork

What Is Rotork Worth?

According to our valuation model, Rotork seems to be fairly priced at around 7.4% below our intrinsic value, which means if you buy Rotork today, you’d be paying a fair price for it. And if you believe that the stock is really worth ￡3.35, then there isn’t much room for the share price grow beyond what it’s currently trading. In addition to this, Rotork has a low beta, which suggests its share price is less volatile than the wider market.

Can we expect growth from Rotork?

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. With profit expected to grow by a double-digit 16% over the next couple of years, the outlook is positive for Rotork. 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? ROR’s optimistic future growth appears to have been factored into the current share price, 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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping tabs on ROR, now may not be the most optimal 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.