CGNX Cognex Corporation
$60.54
Stable Earnings Power 65%
P/Adj-EPS × Normalized Multiple
Strong · Conviction

Overvalued

Trading 322.5% above fair value

You pay $60.54
Bear $11.46
Fair $14.33
Bull $17.19
Bear $11.46 -81.1% $0.94 × 12x P/E
Fair $14.33 -76.3% $0.94 × 15x P/E
Bull $17.19 -71.6% $0.94 × 18x P/E

Adjust Assumptions

15.2x
0.94$

Key Value Driver

Normalized P/E multiple (15x base case)

Implied Market Multiple 64.1x

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above.

Average Target (32 analysts) $75.91
Divergence from AlphaVal 81%

Summary

Applying a 15x P/E to adjusted EPS of $0.94, the base-case value is $14.33 per share. DDM cross-check: $14.42.

Warnings

The company's reported profits differ from official accounting profits by 39%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $75.91 (from 32 analysts). Our estimate is 81% below 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