IART
Integra LifeSciences Holdings Corporation
$19.25
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 16.0% below fair value
You pay
$19.25
Bear
$18.33
Fair
$22.91
Bull
$27.50
Bear
$18.33
-4.8%
$1.57 × 12x P/E
Fair
$22.91
+19.0%
$1.57 × 15x P/E
Bull
$27.50
+42.8%
$1.57 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
12.3x
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 $21.00 from 26 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $22.91 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