THRM
Gentherm Incorporated
$36.05
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 23.3% above fair value
You pay
$36.05
Bear
$25.57
Fair
$29.23
Bull
$32.88
Bear
$25.57
-29.1%
$1.46 × 16x P/E
Fair
$29.23
-18.9%
$1.46 × 18x P/E
Bull
$32.88
-8.8%
$1.46 × 20x P/E
Key Value Driver
Normalized P/E multiple (18x base case)
Implied Market Multiple
24.7x
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 $38.67 from 15 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $29.23 per share.
Warnings
The company's reported profits differ from official accounting profits by 143%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $38.67 (from 15 analysts). Our estimate is 33% 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