While Lions Gate Entertainment Corp. (NYSE:LGF.A) might not have the largest market cap around , it saw significant share price movement during recent months on the NYSE, rising to highs of US$9.17 and falling to the lows of US$7.54. 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 Lions Gate Entertainment's current trading price of US$7.76 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Lions Gate Entertainment’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 Lions Gate Entertainment

Is Lions Gate Entertainment Still Cheap?

Good news, investors! Lions Gate Entertainment is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is $10.90, but it is currently trading at US$7.76 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 Lions Gate Entertainment’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 Lions Gate Entertainment look like?

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. With profit expected to grow by 81% over the next year, the near-term future seems bright for Lions Gate Entertainment. 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? Since LGF.A is currently undervalued, it may be a great time to accumulate more of 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 financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on LGF.A for a while, now might be the time to make a leap. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy LGF.A. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.