SHC
Sotera Health Company
$17.89
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 341.7% above fair value
You pay
$17.89
Bear
$3.24
Fair
$4.05
Bull
$4.86
Bear
$3.24
-81.9%
$0.27 × 12x P/E
Fair
$4.05
-77.4%
$0.27 × 15x P/E
Bull
$4.86
-72.8%
$0.27 × 18x P/E
Adjust Assumptions
15.0x
0.27$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
66.3x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (12 analysts)
$21.33
Divergence from AlphaVal
81%
Summary
Applying a 15x P/E to adjusted EPS of $0.27, the base-case value is $4.05 per share.
Warnings
Wall Street's average price target is $21.33 (from 12 analysts). Our estimate is 81% below 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