MD
Pediatrix Medical Group, Inc.
$25.71
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 27.1% below fair value
You pay
$25.71
Bear
$28.21
Fair
$35.27
Bull
$42.32
Bear
$28.21
+9.7%
$2.66 × 12x P/E
Fair
$35.27
+37.2%
$2.66 × 15x P/E
Bull
$42.32
+64.6%
$2.66 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
9.7x
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 $24.60 from 33 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $35.27 per share.
Warnings
The company's reported profits differ from official accounting profits by 37%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $24.60 (from 33 analysts). Our estimate is 62% above 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