VNT
Vontier Corporation
$29.34
Stable Earnings Power
50%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 33.6% below fair value
You pay
$29.34
Bear
$35.34
Fair
$44.17
Bull
$53.00
Bear
$35.34
+20.4%
$2.99 × 12x P/E
Fair
$44.17
+50.5%
$2.99 × 15x P/E
Bull
$53.00
+80.6%
$2.99 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
9.8x
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 $41.20 from 13 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $44.17 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