UTMD Utah Medical Products, Inc.
$69.64
Stable Earnings Power 80%
P/Adj-EPS × Normalized Multiple
Moderate · Conviction

Overvalued

Trading 33.4% above fair value

You pay $69.64
Bear $41.76
Fair $52.20
Bull $62.64
Bear $41.76 -40.0% $3.48 × 12x P/E
Fair $52.20 -25.0% $3.48 × 15x P/E
Bull $62.64 -10.1% $3.48 × 18x P/E

Adjust Assumptions

15.0x
3.48$

Key Value Driver

Normalized P/E multiple (15x base case)

Implied Market Multiple 20.0x

Summary

Applying a 15x P/E to adjusted EPS of $3.48, the base-case value is $52.20 per share.

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