FTRE
Fortrea Holdings Inc.
$13.22
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 51.7% below fair value
You pay
$13.22
Bear
$23.44
Fair
$27.35
Bull
$31.25
Bear
$23.44
+77.3%
$2.11 × 12x P/E
Fair
$27.35
+106.9%
$2.11 × 14x P/E
Bull
$31.25
+136.4%
$2.11 × 16x P/E
Key Value Driver
Normalized P/E multiple (14x base case)
Implied Market Multiple
6.3x
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 $18.57 from 12 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $27.35 per share.
Warnings
Wall Street's average price target is $18.57 (from 12 analysts). Our estimate is 59% above 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