Benchmark Electronics, Inc. logo BHE - Benchmark Electronics, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 3
HOLD 5
SELL 1
STRONG
SELL
0
| PRICE TARGET: $86.00 DETAILS
HIGH: $92.00
LOW: $80.00
MEDIAN: $86.00
CONSENSUS: $86.00
UPSIDE: 1.03%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 50% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Strong
Trading 113.2% above fair value
Current Price $85.12
Bear Case $33.72 60.4% downside ($33.72 - $85.12) / $85.12 = -60.4% 3% stage 1 growth, 11% discount
Fair Value $39.93 53.1% downside ($39.93 - $85.12) / $85.12 = -53.1% 5% stage 1 growth, 11% discount
Bull Case $45.31 46.8% downside ($45.31 - $85.12) / $85.12 = -46.8% 7% stage 1 growth, 11% discount

Adjust Assumptions

5.3%
11.0%
3.0%

Key Value Driver

FCF growth rate (5% base case)

Terminal Value % of EV 35%
Implied Market Multiple 43.3x

Plain-Language Summary

Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $86.00 from 9 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $39.93 per share.

Warnings

Stock-based employee pay equals 69% of profits. This dilutes existing shareholders, so cash flow alone overstates what owners really earn.
Wall Street's average price target is $86.00 (from 9 analysts). Our estimate is 67% below the consensus -- consider that gap carefully.

Key Risks

  • P/E alone misleads — earnings depressed by growth investment
  • Cyclical or commodity businesses may be misclassified as platforms
  • Terminal value dominance suggests sensitivity to long-run assumptions