LIVN
LivaNova PLC
$73.83
Platform & Compounding FCF
50%
Two-stage FCF DCF
Moderate
·
Conviction
Overvalued
Trading 26.4% above fair value
You pay
$73.83
Bear
$46.51
Fair
$58.43
Bull
$69.60
Bear
$46.51
-37.0%
5% stage 1 growth, 11% discount
Fair
$58.43
-20.9%
8% stage 1 growth, 11% discount
Bull
$69.60
-5.7%
11% stage 1 growth, 11% discount
Key Value Driver
FCF growth rate (8% base case)
Terminal Value % of EV
37%
Implied Market Multiple
26.7x
Summary
Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $79.25 from 14 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $58.43 per share.
Warnings
Wall Street's average price target is $79.25 (from 14 analysts). Our estimate is 33% below the consensus -- consider that gap carefully.
Key Risks
- P/E alone misleads — earnings depressed by growth investment
- Cyclical or commodity businesses may be misclassified as platforms
- Terminal value dominance suggests sensitivity to long-run assumptions