TRMB
Trimble Inc.
$51.58
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 25.7% above fair value
You pay
$51.58
Bear
$32.82
Fair
$41.02
Bull
$49.23
Bear
$32.82
-36.4%
$2.08 × 12x P/E
Fair
$41.02
-20.5%
$2.08 × 15x P/E
Bull
$49.23
-4.6%
$2.08 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
24.8x
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 $70.50 from 28 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $41.02 per share.
Warnings
Wall Street's average price target is $70.50 (from 28 analysts). Our estimate is 56% 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