Crocs, Inc. (Nasdaq: CROX), a consumer discretionary company with a market capitalization of $1.1 billion, saw its share price increase by 28.6% over the prior three months. As a small-cap stock with decent coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. Is there still an opportunity here to buy? Let’s examine CROX’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

What’s The Opportunity In CROX?

According to our 9 valuation models, CROX seems to be fairly priced in the market at 6.3% below its intrinsic value. Meaning if you buy CROX today, you’d be paying a reasonable price for it. If you believe the company’s fair value is $16.90, then there’s not significant upside to be gained from mispricing.

Crocs, Inc. Valuation Detail Analysis Model Fair Value Upside (Downside) 10-yr DCF Revenue Exit $17.11 7.7% 5-yr DCF Revenue Exit $17.29 8.8% Peer Revenue Multiples $17.70 11.4% 10-yr DCF EBITDA Exit $21.42 34.8% 5-yr DCF EBITDA Exit $23.15 45.7% Peer EBITDA Multiples $11.26 -29.1% 10-yr DCF Growth Exit $15.84 -0.3% 5-yr DCF Growth Exit $15.56 -2.1% Earnings Power Value $12.74 -19.8% Average $16.90 6.3%

Click on any of the analyses above to view the latest model with real-time data.

In addition, it seems like CROX’s share price is quite stable, which could mean there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its beta of 0.46.

Can We Expect Growth From CROX?

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 matters the most, a more compelling investment thesis would be high growth potential at a cheap price.

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