SOLV
Solventum Corporation
$85.81
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 35.6% below fair value
You pay
$85.81
Bear
$106.56
Fair
$133.20
Bull
$159.84
Bear
$106.56
+24.2%
$8.88 × 12x P/E
Fair
$133.20
+55.2%
$8.88 × 15x P/E
Bull
$159.84
+86.3%
$8.88 × 18x P/E
Adjust Assumptions
15.0x
8.88$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
9.7x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (12 analysts)
$91.13
Divergence from AlphaVal
46%
Summary
Applying a 15x P/E to adjusted EPS of $8.88, the base-case value is $133.20 per share.
Warnings
Wall Street's average price target is $91.13 (from 12 analysts). Our estimate is 46% 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