Cirrus Logic, Inc. (NASDAQ:CRUS), is not the largest company out there, but it received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to US$146 at one point, and dropping to the lows of US$100. 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 Cirrus Logic's current trading price of US$101 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 Cirrus Logic's outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

What Is Cirrus Logic Worth?

The stock seems fairly valued at the moment according to our valuation model. It's trading around 6.30% above our intrinsic value, which means if you buy Cirrus Logic today, you'd be paying a relatively fair price for it. And if you believe that the stock is really worth $94.71, there's only an insignificant downside when the price falls to its real value. What's more, Cirrus Logic's share price may be more stable over time (relative to the market), as indicated by its low beta.

What kind of growth will Cirrus Logic generate?

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. However, with a relatively muted profit growth of 0.5% expected over the next couple of years, growth doesn't seem like a key driver for a buy decision for Cirrus Logic, at least in the short term.

What This Means For You

Are you a shareholder? CRUS's 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 confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you've been keeping an eye on CRUS, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook 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.

Since timing is quite important when it comes to individual stock picking, it's worth taking a look at what those latest analysts forecasts are. So feel free to check out our free graph representing analyst forecasts.

If you are no longer interested in Cirrus Logic, 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.