IEX IDEX Corporation
$208.78
Stable Earnings Power 65%
P/Adj-EPS × Normalized Multiple
Strong · Conviction

Overvalued

Trading 41.6% above fair value

You pay $208.78
Bear $117.98
Fair $147.47
Bull $176.96
Bear $117.98 -43.5% $7.70 × 12x P/E
Fair $147.47 -29.4% $7.70 × 15x P/E
Bull $176.96 -15.2% $7.70 × 18x P/E

Key Value Driver

Normalized P/E multiple (15x base case)

Implied Market Multiple 27.1x

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 $243.57 from 29 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $147.47 per share.

Warnings

Wall Street's average price target is $243.57 (from 29 analysts). Our estimate is 53% 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