At £ 23.80, is Oxford Instruments plc (LON: OXIG) worth a close look?

Oxford Instruments plc (LON: OXIG), is not the largest company in the business, but has seen a significant increase in its share price of over 20% in the last two months on the LSE. As a stock heavily covered by analysts, you can assume that any recent changes in the outlook for the company are already built into the stock price. However, could the stock still trade for a relatively cheap price? Let’s take a look at the outlook and value of Oxford Instruments based on the most recent financial data to see if the opportunity still exists.

Check out our latest review for Oxford Instruments

What is Oxford Instruments worth?

Great news for investors – Oxford Instruments still trades fairly low under my multiple price model, where I compare the company’s price / earnings ratio to the industry average. In this case, I used the price-to-earnings (PE) ratio since there isn’t enough information to reliably forecast the stock’s cash flow. I find the Oxford Instruments ratio of 32.68x to be lower than its peer average of 39.05x, indicating that the stock is trading below the electronics industry. Another thing to keep in mind is that the Oxford Instruments share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you think the current stock price is likely to move towards its industry peers, a low beta could suggest that it is not likely to reach that level anytime soon, and once there is. is, it can be difficult to fall back into an attractive purchase. range again.

What kind of growth will Oxford Instruments generate?

profit and revenue growth

Investors looking to grow their portfolio may want to consider the prospects of a company before buying its shares. Buying a large business with a solid outlook for a cheap price is always a good investment, so let’s also take a look at the future expectations of the business. Oxford Instruments profits over the next few years are expected to increase by 21%, indicating a very optimistic future ahead. This should lead to more robust cash flow, fueling a higher value of the stock.

What this means for you:

Are you a shareholder? Given that OXIG is currently below the industry PE ratio, perhaps now is a great time to build more of your holdings in inventory. With optimistic prospects on the horizon, it seems that this growth has not yet been fully reflected in the share price. However, there are also other factors such as the capital structure to take into account, which could explain the current price multiple.

Are you a potential investor? If you’ve been keeping an eye on OXIG for a while, it might be time to take a leap. Its prospects for prosperous future earnings are not yet fully reflected in the current share price, which means it is not too late to buy OXIG. But before making any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

It can be very helpful to consider what analysts expect from Oxford Instruments based on their most recent forecasts. Fortunately, you can check out the analysts’ forecasts by clicking here.

If you are no longer interested in Oxford Instruments, you can use our free platform to view our list of over 50 other high growth potential stocks.

This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.

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