ZBRA
Zebra Technologies Corporation
$255.55
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 38.6% above fair value
You pay
$255.55
Bear
$147.52
Fair
$184.40
Bull
$221.28
Bear
$147.52
-42.3%
$9.45 × 12x P/E
Fair
$184.40
-27.8%
$9.45 × 15x P/E
Bull
$221.28
-13.4%
$9.45 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
27.0x
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 $312.33 from 27 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $184.40 per share.
Warnings
Wall Street's average price target is $312.33 (from 27 analysts). Our estimate is 55% 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