CNMD
CONMED Corporation
$37.23
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 30.6% below fair value
You pay
$37.23
Bear
$42.92
Fair
$53.66
Bull
$64.38
Bear
$42.92
+15.3%
$2.79 × 13x P/E
Fair
$53.66
+44.1%
$2.79 × 16x P/E
Bull
$64.38
+72.9%
$2.79 × 20x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
13.3x
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 $78.00 from 21 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $53.66 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.
Wall Street's average price target is $78.00 (from 21 analysts). Our estimate is 42% 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