ZBRA Zebra Technologies Corporation
$344.83
Stable Earnings Power 40%
P/Adj-EPS × Normalized Multiple
Strong · Conviction

Overvalued

Trading 181.0% above fair value

You pay $344.83
Bear $98.16
Fair $122.70
Bull $147.24
Bear $98.16 -71.5% $8.18 × 12x P/E
Fair $122.70 -64.4% $8.18 × 15x P/E
Bull $147.24 -57.3% $8.18 × 18x P/E

Adjust Assumptions

15.0x
8.18$

Key Value Driver

Normalized P/E multiple (15x base case)

Implied Market Multiple 42.2x

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above.

Average Target (27 analysts) $363.67
Divergence from AlphaVal 66%

Summary

Applying a 15x P/E to adjusted EPS of $8.18, the base-case value is $122.70 per share.

Warnings

Wall Street's average price target is $363.67 (from 27 analysts). Our estimate is 66% 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