GDI Integrated Facility Services Inc. (TSE:GDI), might not be a large cap stock, but it saw a decent share price growth of 13% on the TSX over the last few months. While good news for shareholders, the company has traded much higher in the past year. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine GDI Integrated Facility Services’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for GDI Integrated Facility Services

Is GDI Integrated Facility Services Still Cheap?

The stock is currently trading at CA$35.00 on the share market, which means it is overvalued by 32% compared to our intrinsic value of CA$26.56. This means that the opportunity to buy GDI Integrated Facility Services at a good price has disappeared! But, is there another opportunity to buy low in the future? Since GDI Integrated Facility Services’s share price is quite volatile, this could mean it can sink lower (or rise even further) in the future, giving us another chance to invest. 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 GDI Integrated Facility Services look like?

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. 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. GDI Integrated Facility Services' earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.

What This Means For You

Are you a shareholder? It seems like the market has well and truly priced in GDI’s positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe GDI 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 GDI for some time, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the optimistic prospect is encouraging for GDI, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.