ConvaTec Group Valuation

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

CNVV.Y ($11.94) is trading below our estimate of [[fair value]] ($24.14)

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: CNVV.Y ($11.94) is trading below our estimate of fair value ($24.14)

Significantly Below Fair Value: CNVV.Y is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CNVV.Y. This is calculated by dividing CNVV.Y's market cap by their current earnings.
What is CNVV.Y's PE Ratio?
PE Ratio	39.5x
Earnings	US$153.20m
Market Cap	US$6.05b

CNVV.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	3.3x
Enterprise Value/EBITDA	15.5x
PEG Ratio	1.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CNVV.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	29.4x
MMSI Merit Medical Systems	51.1x	14.2%	US$6.1b
HAE Haemonetics	34.7x	24.7%	US$4.3b
SOLV Solventum	17x	6.0%	US$12.2b
LNTH Lantheus Holdings	14.7x	13.9%	US$6.3b
CNVV.Y ConvaTec Group	39.5x	20.5%	US$4.8b

Price-To-Earnings vs Peers: CNVV.Y is expensive based on its Price-To-Earnings Ratio (39.5x) compared to the peer average (29.4x).

Price to Earnings Ratio vs Industry

How does CNVV.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: CNVV.Y is expensive based on its Price-To-Earnings Ratio (39.5x) compared to the US Medical Equipment industry average (37.2x).

Price to Earnings Ratio vs Fair Ratio

What is CNVV.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.

CNVV.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	39.5x
Fair PE Ratio	35.7x

Price-To-Earnings vs Fair Ratio: CNVV.Y is expensive based on its Price-To-Earnings Ratio (39.5x) compared to the estimated Fair Price-To-Earnings Ratio (35.7x).

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.

Discover undervalued companies

Lantheus Holdings

US$6.3b

Develops, manufactures, and commercializes diagnostic and therapeutic products that assist clinicians in the diagnosis and treatment of heart, cancer, and other diseases worldwide.

LNTH

US$90.52

18.8%

27.5%

Elevance Health

US$93.4b

Operates as a health benefits company in the United States.

ELV

US$402.55

0.5%

-15.7%

electroCore

US$72.3m

A commercial stage bioelectronic medicine and wellness company, provides non-invasive vagus nerve stimulation technology platform in the United States, the United Kingdom, and internationally.

ECOR

US$11.21

16.2%

99.5%