SEI Investments Co (NASDAQ:SEIC), a diversified financials company based in United States, Check out our latest analysis for SEI Investments
What is SEIC worth?
SEIC appears to be overvalued by 27% at the moment, based on my discounted cash flow valuation. Not the best news for investors looking to buy! The intrinsic value of the stock is $42.14, but it is currently valued by the market at $57.34. If you like the stock, you may want to keep an eye out for a potential price decline in the future. Given that SEIC’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
What kind of growth will SEIC generate?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares.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 33.56% over the next couple of years, the future seems bright for SEIC. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? It seems like the market has well and truly priced in SEIC’s positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe SEIC 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.
Are you a potential investor? If you’ve been keeping tabs on SEIC for some time, 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 optimistic prospect is encouraging for SEIC, 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 SEI Investments. You can find everything you need to know about SEIC in the latest infographic research report. If you are no longer interested in SEI Investments, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
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