FLEX
Flex Ltd.
$119.34
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 241.5% above fair value
You pay
$119.34
Bear
$27.96
Fair
$34.95
Bull
$41.94
Bear
$27.96
-76.6%
$2.33 × 12x P/E
Fair
$34.95
-70.7%
$2.33 × 15x P/E
Bull
$41.94
-64.9%
$2.33 × 18x P/E
Adjust Assumptions
15.0x
2.33$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
51.2x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (26 analysts)
$147.50
Divergence from AlphaVal
76%
Summary
Applying a 15x P/E to adjusted EPS of $2.33, the base-case value is $34.95 per share.
Warnings
Wall Street's average price target is $147.50 (from 26 analysts). Our estimate is 76% 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