ICHR
Ichor Holdings, Ltd.
$64.77
Distressed or Transitioning
75%
Current EPS × Depressed Multiple
Strong
·
Conviction
Overvalued
Trading 96.3% above fair value
You pay
$64.77
Bear
$22.00
Fair
$33.00
Bull
$44.00
Bear
$22.00
-66.0%
EPS continues to decline, 5x multiple
Fair
$33.00
-49.1%
Current EPS stabilizes, 8x multiple
Bull
$44.00
-32.1%
Credible recovery, multiple re-rates to 10x
Key Value Driver
Whether the core business model is intact or structurally impaired
Implied Market Multiple
28.2x
Summary
Our base-case estimate uses Current EPS × Depressed Multiple. We then blend that result with the average analyst price target of $96.00 from 14 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $33.00 per share.
Warnings
Don't assume past cash flow levels will return — the company's troubles may have permanently reduced its ability to generate profits.
A stock can look cheap on paper and still lose half its value if the underlying business is permanently damaged.
The wide range between our best and worst cases is intentional — pretending to know a precise value for a troubled company would be misleading.
Wall Street's average price target is $96.00 (from 14 analysts). Our estimate is 82% below the consensus -- consider that gap carefully.
Key Risks
- Bullish DCF projections are fundamentally unknowable for distressed companies
- M&A speculation can floor the stock above intrinsic value temporarily
- Management credibility is a key input — new CEO expands the bull case