CON Concentra Group Holdings Parent, Inc.
$25.32
Stable Earnings Power 80%
P/Adj-EPS × Normalized Multiple
Mild · Conviction

Overvalued

Trading 7.0% above fair value

You pay $25.32
Bear $18.93
Fair $23.66
Bull $28.38
Bear $18.93 -25.2% $1.45 × 12x P/E
Fair $23.66 -6.6% $1.45 × 15x P/E
Bull $28.38 +12.1% $1.45 × 18x P/E

Key Value Driver

Normalized P/E multiple (15x base case)

Implied Market Multiple 17.5x

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 $31.50 from 5 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $23.66 per share.

Warnings

Wall Street's average price target is $31.50 (from 5 analysts). Our estimate is 31% 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