Is HEI-A undervalued?

AlphaMadera's AlphaVal page computes HEICO Corporation's fair value using a multi-method blend (DCF, comparable-multiples, and Graham-style intrinsic value), then compares it to the current market price to flag HEI-A as undervalued, fairly valued, or overvalued.

What is HEICO Corporation's fair value?

Fair value for HEI-A is a model output combining discounted cash flow projections, peer-group multiples, and a Graham number floor. The live AlphaVal page shows the blended fair value alongside each method's individual estimate.

How does AlphaMadera value HEI-A?

AlphaVal uses three primary techniques: a five-year discounted-cash-flow projection with terminal multiple, peer-group multiple analysis (P/E, EV/EBITDA, P/S), and Graham's defensive-investor intrinsic-value formula. Inputs come from HEI-A's most recent reported fundamentals.

HEI-A - HEICO Corporation

Price: -- -- | CONSENSUS: Buy DETAILS | PRICE TARGET: $396.67 DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 85% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Fair Value Mild

Trading 13.7% below fair value

Current Price $245.97

Bear Case $151.79 38.3% downside ($151.79 - $245.97) / $245.97 = -38.3% 12% stage 1 growth, 11% discount

Fair Value $285.03 15.9% upside ($285.03 - $245.97) / $245.97 = 15.9% 19% stage 1 growth, 11% discount

Bull Case $449.98 82.9% upside ($449.98 - $245.97) / $245.97 = 82.9% 25% stage 1 growth, 11% discount

Adjust Assumptions

DCF Stage 1 Growth Rate

19.4%

Discount Rate (WACC)

11.0%

Terminal Growth Rate

3.0%

Key Value Driver

FCF growth rate (19% base case)

Terminal Value % of EV 46%

Implied Market Multiple 43.4x

Market is pricing in (growth) 19.3% vs our 19.4% base

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 $396.67 from 20 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $285.03 per share.

Warnings

ℹ Wall Street's average price target is $396.67 (from 20 analysts). Our estimate is 38% 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