Ekso Bionics Holdings Inc (NASDAQ:EKSO), a healthcare equipment and services company based in United States, saw significant share price volatility over the past couple of months on the NasdaqCM, rising to the highs of $2.52 and falling to the lows of $1.15. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether EKSO's current trading price of $1.19 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at EKSO’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Ekso Bionics Holdings

Is EKSO still cheap?

EKSO is currently overpriced based on my relative valuation model. In this instance, I’ve used price-to-book ratio (PB) ratio given that there is not enough information to reliably forecast the stock’s cash flows, and its earnings doesn’t seem to reflect its true value. I find that EKSO’s ratio of 18.9x is above its peer average of 4.4x, which suggests the stock is overvalued compared to the healthcare equipment and services industry. But, is there another opportunity to buy low in the future? Given that EKSO’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 does the future of EKSO 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 EKSO future expectations. With profit expected to grow by 31.85% over the next couple of years, the future seems bright for EKSO. 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 EKSO’s positive outlook, with shares trading above its fair value. However, this brings up another question – is now the right time to sell? If you believe EKSO 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 EKSO for some time, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the optimistic prospect is encouraging for EKSO, 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 Ekso Bionics Holdings. You can find everything you need to know about EKSO in the latest infographic research report. If you are no longer interested in Ekso Bionics Holdings, you can use our free platform to see my list of over 50 other stocks with a high growth potential.

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.