As of June 12, 2025, Ortho Clinical Diagnostics Holdings PLC's estimated intrinsic value ranges from $8.10 to $26.83 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $26.83 | +52.2% |
| Discounted Cash Flow (5Y) | $22.48 | +27.5% |
| Dividend Discount Model (Multi-Stage) | $8.10 | -54.1% |
| Earnings Power Value | $20.08 | +13.9% |
Is Ortho Clinical Diagnostics Holdings PLC (OCDX) undervalued or overvalued?
With the current market price at $17.63, the stock appears to be moderately 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 Ortho Clinical Diagnostics Holdings PLC'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 | 3.2% | 3.7% |
| Equity market risk premium | 4.2% | 5.2% |
| Adjusted beta | 1 | 1.11 |
| Cost of equity | 7.4% | 10.0% |
| Cost of debt | 4.7% | 9.1% |
| Tax rate | 27.0% | 27.0% |
| Debt/Equity ratio | 0.54 | 0.54 |
| After-tax WACC | 6.0% | 8.8% |
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 | $22 | $7,303M | 87.2% |
| 10-Year Growth | $27 | $8,338M | 75.0% |
| 5-Year EBITDA | $31 | $7,441M | 87.5% |
| 10-Year EBITDA | $36 | $8,576M | 75.7% |
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 | $482M |
| Discount Rate (WACC) | 8.8% - 6.0% |
| Enterprise Value | $5,463M - $8,004M |
| Net Debt | $1,959M |
| Equity Value | $3,504M - $6,045M |
| Outstanding Shares | 238M |
| Fair Value | $15 - $25 |
| Selected Fair Value | $20.08 |
| Metric | Value |
|---|---|
| Market Capitalization | $4191M |
| Enterprise Value | $4191M |
| Trailing P/E | 0.00 |
| Forward P/E | 221.79 |
| Trailing EV/EBITDA | 21.25 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.54 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 35% | $8.05 |
| Discounted Cash Flow (5Y) | 29% | $5.62 |
| Dividend Discount Model (Multi-Stage) | 24% | $1.62 |
| Earnings Power Value | 12% | $2.01 |
| Weighted Average | 100% | $20.35 |
Based on our comprehensive valuation analysis, Ortho Clinical Diagnostics Holdings PLC's weighted average intrinsic value is $20.35, which is approximately 15.4% above the current market price of $17.63.
Key investment considerations:
Given these factors, we believe Ortho Clinical Diagnostics Holdings PLC is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.