CCRN
Cross Country Healthcare, Inc.
$13.25
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 51.1% below fair value
You pay
$13.25
Bear
$21.68
Fair
$27.10
Bull
$32.52
Bear
$21.68
+63.6%
$2.05 × 12x P/E
Fair
$27.10
+104.5%
$2.05 × 15x P/E
Bull
$32.52
+145.4%
$2.05 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
6.5x
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 $12.50 from 14 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $27.10 per share.
Warnings
Wall Street's average price target is $12.50 (from 14 analysts). Our estimate is 146% 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