IEX
IDEX Corporation
$223.27
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 50.5% above fair value
You pay
$223.27
Bear
$118.67
Fair
$148.32
Bull
$177.99
Bear
$118.67
-46.9%
$7.70 × 12x P/E
Fair
$148.32
-33.6%
$7.70 × 15x P/E
Bull
$177.99
-20.3%
$7.70 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
29.0x
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 $247.00 from 29 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $148.32 per share.
Warnings
Wall Street's average price target is $247.00 (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