Service Corporation International (NYSE:SCI) received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$75.56 at one point, and dropping to the lows of US$67.59. 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 Service Corporation International's current trading price of US$70.97 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Service Corporation International's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Is Service Corporation International Still Cheap?

According to our valuation model, Service Corporation International seems to be fairly priced at around 15.85% above our intrinsic value, which means if you buy Service Corporation International today, you'd be paying a relatively fair price for it. And if you believe that the stock is really worth $61.26, there's only an insignificant downside when the price falls to its real value. What's more, Service Corporation International's share price may be more stable over time (relative to the market), as indicated by its low beta.

Can we expect growth from Service Corporation International?

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 11% over the next couple of years, the outlook is positive for Service Corporation International. 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? SCI'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 financial strength of the company. 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 an eye on SCI, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

If you want to dive deeper into Service Corporation International, you'd also look into what risks it is currently facing. Our analysis shows 2 warning signs for Service Corporation International (1 can't be ignored!) and we strongly recommend you look at them before investing.

If you are no longer interested in Service Corporation International, 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.