Cochlear Limited

OTCPK:CHEO.F Stock Report

Market Cap: US$11.8b

Cochlear Valuation

Is CHEO.F undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CHEO.F when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CHEO.F ($180.01) is trading above our estimate of fair value ($142.65)

Significantly Below Fair Value: CHEO.F is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CHEO.F?

Key metric: As CHEO.F is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CHEO.F. This is calculated by dividing CHEO.F's market cap by their current earnings.
What is CHEO.F's PE Ratio?
PE Ratio53x
EarningsAU$356.80m
Market CapAU$18.92b

Price to Earnings Ratio vs Peers

How does CHEO.F's PE Ratio compare to its peers?

The above table shows the PE ratio for CHEO.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average101.8x
MASI Masimo
115.5x30.0%US$9.1b
BAX Baxter International
124.5x40.5%US$15.1b
GMED Globus Medical
122.9x49.5%US$11.3b
PODD Insulet
44.4x2.0%US$18.7b
CHEO.F Cochlear
53x11.7%US$18.9b

Price-To-Earnings vs Peers: CHEO.F is good value based on its Price-To-Earnings Ratio (53x) compared to the peer average (101.8x).

Price to Earnings Ratio vs Industry

How does CHEO.F's PE Ratio compare vs other companies in the US Medical Equipment Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
MHUA Meihua International Medical Technologies
0.9xn/aUS$8.08m
PAVM PAVmed
0.4x-90.0%US$6.39m
RTSL Rapid Therapeutic Science Laboratories
0.3xn/aUS$18.99k
No more companies available in this PE range
CHEO.F 53.0xIndustry Avg. 35.2xNo. of Companies9PE020406080100+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CHEO.F is expensive based on its Price-To-Earnings Ratio (53x) compared to the US Medical Equipment industry average (35.2x).

Price to Earnings Ratio vs Fair Ratio

What is CHEO.F's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CHEO.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio53x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CHEO.F's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst CHEO.F forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$180.01
US$183.65
+2.0%
10.4%US$214.82US$140.10n/a14
Dec ’25US$188.36
US$193.88
+2.9%
10.6%US$227.06US$148.08n/a14
Nov ’25US$178.59
US$191.40
+7.2%
10.1%US$227.02US$148.06n/a14
Oct ’25US$208.93
US$198.05
-5.2%
10.7%US$237.77US$155.07n/a14
Sep ’25US$193.20
US$189.07
-2.1%
11.7%US$230.09US$150.06n/a15
Aug ’25US$237.38
US$186.81
-21.3%
13.8%US$237.44US$143.12n/a15
Jul ’25US$217.00
US$185.67
-14.4%
13.2%US$241.23US$145.40n/a16
Jun ’25US$213.50
US$183.00
-14.3%
13.2%US$237.75US$143.30n/a16
May ’25US$208.00
US$183.00
-12.0%
13.2%US$237.75US$143.30n/a16
Apr ’25US$223.96
US$185.84
-17.0%
12.9%US$240.37US$144.88n/a17
Mar ’25US$222.67
US$184.03
-17.4%
13.5%US$239.02US$144.06n/a17
Feb ’25US$200.25
US$167.96
-16.1%
13.1%US$210.23US$132.03n/a16
Jan ’25US$198.50
US$171.59
-13.6%
12.2%US$217.32US$136.48n/a17
Dec ’24US$180.44
US$159.22
-11.8%
10.6%US$194.37US$130.32US$188.3618
Nov ’24US$158.09
US$151.72
-4.0%
9.3%US$177.38US$125.30US$178.5918
Oct ’24US$163.25
US$153.83
-5.8%
9.6%US$180.23US$127.30US$208.9318
Sep ’24US$176.30
US$152.87
-13.3%
9.8%US$179.66US$121.91US$193.2019
Aug ’24US$160.77
US$149.88
-6.8%
9.1%US$175.23US$125.64US$237.3819
Jul ’24US$150.25
US$150.63
+0.2%
9.1%US$177.02US$126.92US$217.0019
Jun ’24US$160.75
US$146.49
-8.9%
9.2%US$172.38US$123.59US$213.5019
May ’24US$166.91
US$150.59
-9.8%
8.9%US$178.04US$127.65US$208.0016
Apr ’24US$153.56
US$150.59
-1.9%
8.9%US$178.04US$127.65US$223.9616
Mar ’24US$152.29
US$152.79
+0.3%
8.0%US$172.45US$130.73US$222.6717
Feb ’24US$151.39
US$151.80
+0.3%
9.9%US$173.54US$121.55US$200.2516
Jan ’24US$135.00
US$146.57
+8.6%
10.4%US$167.86US$113.49US$198.5016
Dec ’23US$142.38
US$145.28
+2.0%
10.4%US$166.43US$112.53US$180.4416

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 05:42
End of Day Share Price 2024/12/20 00:00
Earnings2024/06/30
Annual Earnings2024/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Cochlear Limited is covered by 30 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
John HesterANZ Equities Pty Limited
Saul HadassinBarrenjoey Markets Pty Limited
Stuart RobertsBell Potter