SOLV
Solventum Corporation
$76.28
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 45.4% below fair value
You pay
$76.28
Bear
$111.84
Fair
$139.81
Bull
$167.77
Bear
$111.84
+46.6%
$10.24 × 12x P/E
Fair
$139.81
+83.3%
$10.24 × 15x P/E
Bull
$167.77
+119.9%
$10.24 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
7.4x
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 $84.67 from 11 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $139.81 per share.
Warnings
Wall Street's average price target is $84.67 (from 11 analysts). Our estimate is 81% 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