While BellRing Brands, Inc. (NYSE:BRBR) might not have the largest market cap around , it saw significant share price movement during recent months on the NYSE, rising to highs of US$79.39 and falling to the lows of US$65.40. 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 BellRing Brands' current trading price of US$69.67 reflective of the actual value of the mid-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at BellRing Brands’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

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What's The Opportunity In BellRing Brands?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 10% below our intrinsic value, which means if you buy BellRing Brands today, you’d be paying a fair price for it. And if you believe the company’s true value is $77.72, then there’s not much of an upside to gain from mispricing. Furthermore, BellRing Brands’s low beta implies that the stock is less volatile than the wider market.

View our latest analysis for BellRing Brands

What does the future of BellRing Brands look like?

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. BellRing Brands' earnings over the next few years are expected to increase by 41%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? BRBR’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 track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value?

Are you a potential investor? If you’ve been keeping tabs on BRBR, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect 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'd like to know more about BellRing Brands as a business, it's important to be aware of any risks it's facing. When we did our research, we found 3 warning signs for BellRing Brands (2 shouldn't be ignored!) that we believe deserve your full attention.

If you are no longer interested in BellRing Brands, 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.