HAE
Haemonetics Corporation
$65.49
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 26.5% above fair value
You pay
$65.49
Bear
$41.41
Fair
$51.76
Bull
$62.11
Bear
$41.41
-36.8%
$2.80 × 13x P/E
Fair
$51.76
-21.0%
$2.80 × 16x P/E
Bull
$62.11
-5.2%
$2.80 × 19x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
23.4x
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 $75.33 from 21 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $51.76 per share.
Warnings
The company's reported profits differ from official accounting profits by 37%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $75.33 (from 21 analysts). Our estimate is 42% 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