Lennox International Inc. logo LII - Lennox International Inc.

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 10
HOLD 16
SELL 4
STRONG
SELL
0
| PRICE TARGET: $553.45 DETAILS
HIGH: $650.00
LOW: $450.00
MEDIAN: $535.00
CONSENSUS: $553.45
UPSIDE: 10.91%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 70% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Moderate
Trading 29.6% above fair value
Current Price $499.00
Bear Case $271.89 45.5% downside ($271.89 - $499.00) / $499.00 = -45.5% 6% stage 1 growth, 11% discount
Fair Value $385.04 22.8% downside ($385.04 - $499.00) / $499.00 = -22.8% 10% stage 1 growth, 11% discount
Bull Case $495.01 0.8% downside ($495.01 - $499.00) / $499.00 = -0.8% 12% stage 1 growth, 11% discount

Adjust Assumptions

9.6%
11.0%
3.0%

Key Value Driver

FCF growth rate (10% base case)

Terminal Value % of EV 39%
Implied Market Multiple 31.4x

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 $553.45 from 30 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $385.04 per share.

Warnings

Wall Street's average price target is $553.45 (from 30 analysts). Our estimate is 43% 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