FTRE
Fortrea Holdings Inc.
$18.03
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 33.5% below fair value
You pay
$18.03
Bear
$23.24
Fair
$27.11
Bull
$30.99
Bear
$23.24
+28.9%
$2.11 × 12x P/E
Fair
$27.11
+50.4%
$2.11 × 14x P/E
Bull
$30.99
+71.9%
$2.11 × 16x P/E
Key Value Driver
Normalized P/E multiple (14x base case)
Implied Market Multiple
8.5x
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 $17.40 from 12 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $27.11 per share.
Warnings
Wall Street's average price target is $17.40 (from 12 analysts). Our estimate is 70% 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