FLEX
Flex Ltd.
$119.25
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 85.2% above fair value
You pay
$119.25
Bear
$51.50
Fair
$64.38
Bull
$77.26
Bear
$51.50
-56.8%
$2.39 × 12x P/E
Fair
$64.38
-46.0%
$2.39 × 15x P/E
Bull
$77.26
-35.2%
$2.39 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
49.9x
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 $150.00 from 25 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $64.38 per share.
Warnings
Wall Street's average price target is $150.00 (from 25 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