CCRN
Cross Country Healthcare, Inc.
$13.25
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 56.9% below fair value
You pay
$13.25
Bear
$24.60
Fair
$30.75
Bull
$36.90
Bear
$24.60
+85.7%
$2.05 × 12x P/E
Fair
$30.75
+132.1%
$2.05 × 15x P/E
Bull
$36.90
+178.5%
$2.05 × 18x P/E
Adjust Assumptions
15.0x
2.05$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
6.5x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (14 analysts)
$12.09
Divergence from AlphaVal
154%
Summary
Applying a 15x P/E to adjusted EPS of $2.05, the base-case value is $30.75 per share.
Warnings
Wall Street's average price target is $12.09 (from 14 analysts). Our estimate is 154% 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