PKI
PerkinElmer, Inc.
$115.24
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 67.7% above fair value
You pay
$115.24
Bear
$54.96
Fair
$68.70
Bull
$82.44
Bear
$54.96
-52.3%
$4.58 × 12x P/E
Fair
$68.70
-40.4%
$4.58 × 15x P/E
Bull
$82.44
-28.5%
$4.58 × 18x P/E
Adjust Assumptions
15.0x
4.58$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
25.2x
Summary
Applying a 15x P/E to adjusted EPS of $4.58, the base-case value is $68.70 per share.
Warnings
The company's reported profits differ from official accounting profits by 121%. Check what costs are being left out of the adjusted number.
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