XRAY
DENTSPLY SIRONA Inc.
$13.02
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 43.0% below fair value
You pay
$13.02
Bear
$18.29
Fair
$22.85
Bull
$27.43
Bear
$18.29
+40.5%
$1.81 × 12x P/E
Fair
$22.85
+75.5%
$1.81 × 15x P/E
Bull
$27.43
+110.7%
$1.81 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
7.2x
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 $12.67 from 31 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $22.85 per share.
Warnings
Wall Street's average price target is $12.67 (from 31 analysts). Our estimate is 115% above 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