IART
Integra LifeSciences Holdings Corporation
$15.10
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 26.9% below fair value
You pay
$15.10
Bear
$16.53
Fair
$20.66
Bull
$24.80
Bear
$16.53
+9.5%
$1.57 × 12x P/E
Fair
$20.66
+36.8%
$1.57 × 15x P/E
Bull
$24.80
+64.2%
$1.57 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
9.6x
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 $12.00 from 26 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $20.66 per share.
Warnings
Wall Street's average price target is $12.00 (from 26 analysts). Our estimate is 96% 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