Yahoo Finance Why NBT Bancorp Inc. (NASDAQ:NBTB) Could Be Worth Watching
NBT Bancorp Inc. (NASDAQ:NBTB), operating in the financial services industry based in United States, maintained its current share price over the past couple of month on the NASDAQGS, with a relatively tight range of US$37.79 to US$41.38. However, does this price actually reflect the true value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at NBT Bancorp’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 NBT Bancorp
What is NBT Bancorp worth?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 11% below my intrinsic value, which means if you buy NBT Bancorp today, you’d be paying a reasonable price for it. And if you believe the company’s true value is $43.40, then there’s not much of an upside to gain from mispricing. Furthermore, NBT Bancorp’s low beta implies that the stock is less volatile than the wider market.
Can we expect growth from NBT Bancorp?
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. However, with a negative profit growth of -4.8% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for NBT Bancorp. This certainty tips the risk-return scale towards higher risk.
What this means for you:
Are you a shareholder? Currently, NBTB appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. Is your current exposure to the stock optimal for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping tabs on NBTB for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The stock appears to be trading at fair value, which means there’s less benefit from mispricing. Furthermore, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help crystalize your views on NBTB should the price fluctuate below its true value.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on NBT Bancorp. You can find everything you need to know about NBT Bancorp in the latest infographic research report. If you are no longer interested in NBT Bancorp, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
