Braze, Inc. (NASDAQ:BRZE), might not be a large cap stock, but it saw significant share price movement during recent months on the NASDAQGS, rising to highs of US$45.88 and falling to the lows of US$32.36. 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 Braze's current trading price of US$32.78 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 Braze’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

See our latest analysis for Braze

What Is Braze Worth?

Great news for investors – Braze is still trading at a fairly cheap price. Our valuation model shows that the intrinsic value for the stock is $44.58, but it is currently trading at US$32.78 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, Braze’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.

What does the future of Braze look like?

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 a double-digit 19% over the next couple of years, the outlook is positive for Braze. 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 BRZE is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic 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 capital structure to consider, which could explain the current undervaluation.

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