SRTA
Strata Critical Medical, Inc.
$5.94
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 47.1% below fair value
You pay
$5.94
Bear
$8.98
Fair
$11.23
Bull
$13.48
Bear
$8.98
+51.2%
$0.54 × 18x P/E
Fair
$11.23
+89.1%
$0.54 × 22x P/E
Bull
$13.48
+126.9%
$0.54 × 27x P/E
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
10.9x
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 $7.25 from 6 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $11.23 per share.
Warnings
Wall Street's average price target is $7.25 (from 6 analysts). Our estimate is 69% 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