FLEX
Flex Ltd.
$132.47
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 109.7% above fair value
You pay
$132.47
Bear
$50.53
Fair
$63.17
Bull
$75.81
Bear
$50.53
-61.9%
$2.39 × 12x P/E
Fair
$63.17
-52.3%
$2.39 × 15x P/E
Bull
$75.81
-42.8%
$2.39 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
55.4x
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 $145.17 from 25 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $63.17 per share.
Warnings
Wall Street's average price target is $145.17 (from 25 analysts). Our estimate is 75% 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