Repay Holdings Corporation (NASDAQ:RPAY), might not be a large cap stock, but it saw a decent share price growth in the teens level on the NASDAQCM over the last few months. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price. However, could the stock still be trading at a relatively cheap price? Today I will analyse the most recent data on Repay Holdings’s outlook and valuation to see if the opportunity still exists.

View our latest analysis for Repay Holdings

Is Repay Holdings still cheap?

Good news, investors! Repay Holdings is still a bargain right now. My valuation model shows that the intrinsic value for the stock is $31.65, but it is currently trading at US$24.19 on the share market, meaning that there is still an opportunity to buy now. Although, there may be another chance to buy again in the future. This is because Repay Holdings’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 Repay Holdings?

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 71% over the next year, the near-term future seems bright for Repay Holdings. 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? Since RPAY is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.

Are you a potential investor? If you’ve been keeping an eye on RPAY for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy RPAY. But before you make any investment decisions, consider other factors such as the strength of its balance sheet, in order to make a well-informed buy.

If you'd like to know more about Repay Holdings as a business, it's important to be aware of any risks it's facing. Case in point: We've spotted 1 warning sign for Repay Holdings you should be aware of.

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

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. 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.

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