What Is Bio-Techne Corporation's (NASDAQ:TECH) Share Price Doing?

Today we're going to take a look at the well-established Bio-Techne Corporation (NASDAQ:TECH). The company's stock received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$450 at one point, and dropping to the lows of US$339. 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 Bio-Techne's current trading price of US$357 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Bio-Techne’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for Bio-Techne

Is Bio-Techne still cheap?

The stock seems fairly valued at the moment according to my valuation model. It’s trading around 1.6% below my intrinsic value, which means if you buy Bio-Techne today, you’d be paying a fair price for it. And if you believe the company’s true value is $362.89, then there’s not much of an upside to gain from mispricing. Although, there may be an opportunity to buy in the future. This is because Bio-Techne’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.

Can we expect growth from Bio-Techne?

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 75% over the next couple of years, the future seems bright for Bio-Techne. 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? TECH’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 an eye on TECH, 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 diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into Bio-Techne, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 1 warning sign for Bio-Techne you should know about.

If you are no longer interested in Bio-Techne, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.