ZBRA
Zebra Technologies Corporation
$272.52
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 46.5% above fair value
You pay
$272.52
Bear
$148.83
Fair
$186.03
Bull
$223.24
Bear
$148.83
-45.4%
$9.45 × 12x P/E
Fair
$186.03
-31.7%
$9.45 × 15x P/E
Bull
$223.24
-18.1%
$9.45 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
28.8x
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 $318.86 from 27 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $186.03 per share.
Warnings
Wall Street's average price target is $318.86 (from 27 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