MASS 908 Devices Inc.
$7.28
Stable Earnings Power 80%
P/Adj-EPS × Normalized Multiple
Strong · Conviction

Undervalued

Trading 43.5% below fair value

You pay $7.28
Bear $10.31
Fair $12.88
Bull $15.46
Bear $10.31 +41.6% $0.62 × 17x P/E
Fair $12.88 +77.0% $0.62 × 21x P/E
Bull $15.46 +112.3% $0.62 × 25x P/E

Key Value Driver

Normalized P/E multiple (21x base case)

Implied Market Multiple 11.8x

Summary

Applying a 21x P/E to adjusted EPS of $0.62, the base-case value is $12.88 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