MMS
Maximus, Inc.
$61.17
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 43.5% below fair value
You pay
$61.17
Bear
$86.63
Fair
$108.28
Bull
$129.95
Bear
$86.63
+41.6%
$6.54 × 13x P/E
Fair
$108.28
+77.0%
$6.54 × 16x P/E
Bull
$129.95
+112.4%
$6.54 × 20x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
9.4x
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 $110.00 from 16 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $108.28 per share.
Warnings
Dividend-based valuation: $22.97 (below our primary estimate by 79%). Large gaps may signal the dividend doesn't reflect full earning power.
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