CNMD
CONMED Corporation
$43.51
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 0.0% below fair value
You pay
$43.51
Bear
$34.82
Fair
$43.53
Bull
$52.23
Bear
$34.82
-20.0%
$2.79 × 13x P/E
Fair
$43.53
+0.0%
$2.79 × 16x P/E
Bull
$52.23
+20.0%
$2.79 × 20x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
15.6x
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 $37.50 from 21 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $43.53 per share.
Warnings
The company's reported profits differ from official accounting profits by 85%. Check what costs are being left out of the adjusted number.
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