BIO
Bio-Rad Laboratories, Inc.
$304.36
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 60.1% below fair value
You pay
$304.36
Bear
$610.86
Fair
$763.57
Bull
$916.29
Bear
$610.86
+100.7%
$58.27 × 12x P/E
Fair
$763.57
+150.9%
$58.27 × 15x P/E
Bull
$916.29
+201.1%
$58.27 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
5.2x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $321.67 from 14 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $763.57 per share.
Warnings
The company's reported profits differ from official accounting profits by 109%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $321.67 (from 14 analysts). Our estimate is 172% above the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples