GNTX
Gentex Corporation
$23.85
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 15.6% below fair value
You pay
$23.85
Bear
$24.74
Fair
$28.27
Bull
$31.81
Bear
$24.74
+3.7%
$1.81 × 14x P/E
Fair
$28.27
+18.5%
$1.81 × 16x P/E
Bull
$31.81
+33.4%
$1.81 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
13.1x
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 $26.00 from 20 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $28.27 per share.
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