FTV
Fortive Corporation
$59.13
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 36.2% above fair value
You pay
$59.13
Bear
$34.73
Fair
$43.41
Bull
$52.09
Bear
$34.73
-41.3%
$2.35 × 12x P/E
Fair
$43.41
-26.6%
$2.35 × 15x P/E
Bull
$52.09
-11.9%
$2.35 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
25.2x
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 $62.43 from 30 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $43.41 per share.
Warnings
The company's reported profits differ from official accounting profits by 35%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $62.43 (from 30 analysts). Our estimate is 44% 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