VLTO
Veralto Corporation
$86.80
Stable Earnings Power
50%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 26.9% above fair value
You pay
$86.80
Bear
$54.72
Fair
$68.40
Bull
$82.08
Bear
$54.72
-37.0%
$3.93 × 12x P/E
Fair
$68.40
-21.2%
$3.93 × 15x P/E
Bull
$82.08
-5.4%
$3.93 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
22.1x
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 $106.14 from 12 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $68.40 per share.
Warnings
Wall Street's average price target is $106.14 (from 12 analysts). Our estimate is 44% 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