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Is It Too Late To Buy Luxoft Holding Inc (NYSE:LXFT)?

Luxoft Holding Inc (NYSE:LXFT), a it company based in Switzerland, received a lot of attention from a substantial price increase on the NYSE over the last few months. With many analysts covering the 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? Today I will analyse the most recent data on Luxoft Holding’s outlook and valuation to see if the opportunity still exists.

See our latest analysis for Luxoft Holding

Is Luxoft Holding still cheap?

The stock is currently trading at US$46.60 on the share market, which means it is overvalued by 24.81% compared to my intrinsic value of $37.34. This means that the opportunity to buy Luxoft Holding at a good price has disappeared! But, is there another opportunity to buy low in the future? Since Luxoft Holding’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

Can we expect growth from Luxoft Holding?

NYSE:LXFT Future Profit September 4th 18
NYSE:LXFT Future Profit September 4th 18

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. Luxoft Holding’s earnings over the next few years are expected to increase by 73.4%, 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? It seems like the market has well and truly priced in LXFT’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 LXFT 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.

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Are you a potential investor? If you’ve been keeping an eye on LXFT for a while, 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 LXFT, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Luxoft Holding. You can find everything you need to know about Luxoft Holding in the latest infographic research report. If you are no longer interested in Luxoft Holding, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.