As of June 8, 2025, Teleflex Inc's estimated intrinsic value ranges from $76.56 to $166.30 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $166.30 | +35.4% |
| Discounted Cash Flow (5Y) | $143.25 | +16.7% |
| Dividend Discount Model (Multi-Stage) | $94.54 | -23.0% |
| Dividend Discount Model (Stable) | $76.56 | -37.7% |
| Earnings Power Value | $154.67 | +26.0% |
Is Teleflex Inc (TFX) undervalued or overvalued?
With the current market price at $122.80, the stock appears to be fairly valued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Teleflex 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 | 0.68 | 0.93 |
| Cost of equity | 7.0% | 10.1% |
| Cost of debt | 4.5% | 5.1% |
| Tax rate | 10.8% | 15.0% |
| Debt/Equity ratio | 0.31 | 0.31 |
| After-tax WACC | 6.3% | 8.7% |
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 | $143 | $7,954M | 84.2% |
| 10-Year Growth | $166 | $8,972M | 70.3% |
| 5-Year EBITDA | $151 | $8,280M | 84.8% |
| 10-Year EBITDA | $177 | $9,459M | 71.8% |
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 | $619M |
| Discount Rate (WACC) | 8.7% - 6.3% |
| Enterprise Value | $7,098M - $9,819M |
| Net Debt | $1,623M |
| Equity Value | $5,474M - $8,195M |
| Outstanding Shares | 44M |
| Fair Value | $124 - $185 |
| Selected Fair Value | $154.67 |
| Metric | Value |
|---|---|
| Market Capitalization | $5427M |
| Enterprise Value | $7050M |
| Trailing P/E | 36.33 |
| Forward P/E | 46.18 |
| Trailing EV/EBITDA | 19.00 |
| Current Dividend Yield | 115.60% |
| Dividend Growth Rate (5Y) | 0.13% |
| Debt-to-Equity Ratio | 0.31 |
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% | $49.89 |
| Discounted Cash Flow (5Y) | 25% | $35.81 |
| Dividend Discount Model (Multi-Stage) | 20% | $18.91 |
| Dividend Discount Model (Stable) | 15% | $11.48 |
| Earnings Power Value | 10% | $15.47 |
| Weighted Average | 100% | $131.56 |
Based on our comprehensive valuation analysis, Teleflex Inc's weighted average intrinsic value is $131.56, which is approximately 7.1% above the current market price of $122.80.
Key investment considerations:
Given these factors, we believe Teleflex Inc is currently fairly valued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.