Wolverine World Wide, Inc. (NYSE:WWW), is not the largest company out there, but it led the NYSE gainers with a relatively large price hike in the past couple of weeks. The company's trading levels have reached its high for the past year, following the recent bounce in the share price. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. But what if there is still an opportunity to buy? Let's examine Wolverine World Wide's valuation and outlook in more detail to determine if there's still a bargain opportunity.

Is Wolverine World Wide Still Cheap?

According to our valuation model, Wolverine World Wide seems to be fairly priced at around 7.02% above our intrinsic value, which means if you buy Wolverine World Wide today, you'd be paying a relatively reasonable price for it. And if you believe that the stock is really worth $22.41, there's only an insignificant downside when the price falls to its real value. Although, there may be an opportunity to buy in the future. This is because Wolverine World Wide's beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity.

Can we expect growth from Wolverine World Wide?

Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. 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. Though in the case of Wolverine World Wide, it is expected to deliver a relatively unexciting top-line growth of 7.8% in the next few years, which doesn't help build up its investment thesis. Growth doesn't appear to be a main reason for a buy decision for the company, at least in the near term.

What This Means For You

Are you a shareholder? WWW'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 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 an eye on WWW, 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.

If you'd like to know more about Wolverine World Wide as a business, it's important to be aware of any risks it's facing. In terms of investment risks, we've identified 4 warning signs with Wolverine World Wide, and understanding these should be part of your investment process.

If you are no longer interested in Wolverine World Wide, 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.