As of May 27, 2025, LeMaitre Vascular Inc's estimated intrinsic value ranges from $21.01 to $235.75 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $111.20 | +36.6% |
| Discounted Cash Flow (5Y) | $85.61 | +5.2% |
| Dividend Discount Model (Multi-Stage) | $85.21 | +4.7% |
| Dividend Discount Model (Stable) | $235.75 | +189.6% |
| Earnings Power Value | $21.01 | -74.2% |
Is LeMaitre Vascular Inc (LMAT) undervalued or overvalued?
With the current market price at $81.40, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate LeMaitre Vascular Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.33 | 0.68 |
| Cost of equity | 5.4% | 8.7% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 22.4% | 23.0% |
| Debt/Equity ratio | 0.09 | 0.09 |
| After-tax WACC | 5.3% | 8.3% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $86 | $2,077M | 88.7% |
| 10-Year Growth | $111 | $2,655M | 79.7% |
| 5-Year EBITDA | $65 | $1,621M | 85.5% |
| 10-Year EBITDA | $88 | $2,141M | 74.9% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $40M |
| Discount Rate (WACC) | 8.3% - 5.3% |
| Enterprise Value | $481M - $753M |
| Net Debt | $143M |
| Equity Value | $338M - $611M |
| Outstanding Shares | 23M |
| Fair Value | $15 - $27 |
| Selected Fair Value | $21.01 |
| Metric | Value |
|---|---|
| Market Capitalization | $1839M |
| Enterprise Value | $1981M |
| Trailing P/E | 40.72 |
| Forward P/E | 35.16 |
| Trailing EV/EBITDA | 17.75 |
| Current Dividend Yield | 83.24% |
| Dividend Growth Rate (5Y) | 16.90% |
| Debt-to-Equity Ratio | 0.09 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $33.36 |
| Discounted Cash Flow (5Y) | 25% | $21.40 |
| Dividend Discount Model (Multi-Stage) | 20% | $17.04 |
| Dividend Discount Model (Stable) | 15% | $35.36 |
| Earnings Power Value | 10% | $2.10 |
| Weighted Average | 100% | $109.27 |
Based on our comprehensive valuation analysis, LeMaitre Vascular Inc's weighted average intrinsic value is $109.27, which is approximately 34.2% above the current market price of $81.40.
Key investment considerations:
Given these factors, we believe LeMaitre Vascular Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.