Cochlear Valuation

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

CHEO.Y ($97.6) is trading above our estimate of [[fair value]] ($75.03)

Is CHEO.Y 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.Y when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CHEO.Y ($97.6) is trading above our estimate of fair value ($75.03)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CHEO.Y. This is calculated by dividing CHEO.Y's market cap by their current earnings.
What is CHEO.Y's PE Ratio?
PE Ratio	54.7x
Earnings	AU$356.80m
Market Cap	AU$19.52b

CHEO.Y key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	8.6x
Enterprise Value/EBITDA	34.7x
PEG Ratio	4.7x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CHEO.Y vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	107x
MASI Masimo	117.8x	29.6%	US$9.3b
BAX Baxter International	140.1x	39.8%	US$17.0b
PODD Insulet	43.8x	1.8%	US$18.4b
GMED Globus Medical	126.1x	48.3%	US$11.5b
CHEO.Y Cochlear	54.7x	11.7%	US$19.5b

Price-To-Earnings vs Peers: CHEO.Y is good value based on its Price-To-Earnings Ratio (54.7x) compared to the peer average (107x).

Price to Earnings Ratio vs Industry

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

5 Companies	Price / Earnings	Estimated Growth	Market Cap
MHUA Meihua International Medical Technologies	2x	n/a	US$18.77m
PAVM PAVmed	0.7x	-77.8%	US$10.99m
RTSL Rapid Therapeutic Science Laboratories	0.3x	n/a	US$18.99k
UTRS Minerva Surgical	n/a	n/a	US$8.00

5 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: CHEO.Y is expensive based on its Price-To-Earnings Ratio (54.7x) compared to the US Medical Equipment industry average (37.2x).

Price to Earnings Ratio vs Fair Ratio

What is CHEO.Y'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.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	54.7x
Fair PE Ratio	29.6x

Price-To-Earnings vs Fair Ratio: CHEO.Y is expensive based on its Price-To-Earnings Ratio (54.7x) compared to the estimated Fair Price-To-Earnings Ratio (29.6x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

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