While PolyNovo Limited (ASX:PNV) might not have the largest market cap around , it received a lot of attention from a substantial price increase on the ASX over the last few months. The recent jump in the share price has meant that the company is trading at close to its 52-week high. With many analysts covering the stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. However, what if the stock is still a bargain? Let's examine PolyNovo's valuation and outlook in more detail to determine if there's still a bargain opportunity.

See our latest analysis for PolyNovo

According to our valuation model, PolyNovo seems to be fairly priced at around 4.42% above our intrinsic value, which means if you buy PolyNovo today, you'd be paying a relatively fair price for it. And if you believe that the stock is really worth A$2.35, then there isn't really any room for the share price grow beyond what it's currently trading. Although, there may be an opportunity to buy in the future. This is because PolyNovo'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.

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. With profit expected to more than double over the next couple of years, the future seems bright for PolyNovo. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

Are you a shareholder? It seems like the market has already priced in PNV's positive outlook, 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 PNV, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which 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 want to dive deeper into PolyNovo, you'd also look into what risks it is currently facing. For example, we've discovered 1 warning sign that you should run your eye over to get a better picture of PolyNovo.

If you are no longer interested in PolyNovo, you can use our free platform to see our list of over 50 other stocks with a high growth potential.