Smart investor article.
Great news for investors – Nova Measuring Instruments is still trading at a fairly cheap price. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Nova Measuring Instruments’s ratio of 20.73x is below its peer average of 28.26x, which suggests the stock is undervalued compared to the Semiconductor industry. However, given that Nova Measuring Instruments’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Since NVMI is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
P/E ration 23
Company profile
Nova Measuring Instruments Ltd. providing metrology solutions for the semiconductor manufacturing industry. It offers in-line Optical and x-ray stand-alone metrology systems, as well as integrated optical metrology systems, which are attached directly to wafer fabrication process equipment. Its products include set of in-situ, integrated and stand-alone metrology platforms suited for dimensional, films and material metrology measurements for process control across multiple semiconductor manufacturing process steps including lithography, Etch, CMP and deposition. The company was founded by Giora Dishon and Moshe Finarov in May 1993 and is headquartered in Ness-Ziona, Israel.
Great news for investors – Nova Measuring Instruments is still trading at a fairly cheap price. In this instance, I’ve used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock’s cash flows. I find that Nova Measuring Instruments’s ratio of 20.73x is below its peer average of 28.26x, which suggests the stock is undervalued compared to the Semiconductor industry. However, given that Nova Measuring Instruments’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
Since NVMI is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
P/E ration 23
Company profile
Nova Measuring Instruments Ltd. providing metrology solutions for the semiconductor manufacturing industry. It offers in-line Optical and x-ray stand-alone metrology systems, as well as integrated optical metrology systems, which are attached directly to wafer fabrication process equipment. Its products include set of in-situ, integrated and stand-alone metrology platforms suited for dimensional, films and material metrology measurements for process control across multiple semiconductor manufacturing process steps including lithography, Etch, CMP and deposition. The company was founded by Giora Dishon and Moshe Finarov in May 1993 and is headquartered in Ness-Ziona, Israel.