BVS
Bioventus Inc.
$9.28
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 40.9% below fair value
You pay
$9.28
Bear
$12.56
Fair
$15.70
Bull
$18.85
Bear
$12.56
+35.3%
$0.91 × 14x P/E
Fair
$15.70
+69.2%
$0.91 × 18x P/E
Bull
$18.85
+103.1%
$0.91 × 22x P/E
Key Value Driver
Normalized P/E multiple (18x base case)
Implied Market Multiple
10.2x
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 $13.00 from 6 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $15.70 per share.
Warnings
The company's reported profits differ from official accounting profits by 175%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $13.00 (from 6 analysts). Our estimate is 26% 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