COO
The Cooper Companies, Inc.
$62.55
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 16.5% below fair value
You pay
$62.55
Bear
$59.92
Fair
$74.91
Bull
$89.89
Bear
$59.92
-4.2%
$3.98 × 14x P/E
Fair
$74.91
+19.8%
$3.98 × 17x P/E
Bull
$89.89
+43.7%
$3.98 × 21x P/E
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
15.7x
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 $93.86 from 24 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $74.91 per share.
Warnings
The company's reported profits differ from official accounting profits by 113%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $93.86 (from 24 analysts). Our estimate is 27% 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