As of June 5, 2025, Zebra Technologies Corp's estimated intrinsic value ranges from $136.63 to $338.82 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $338.82 | +16.4% |
| Discounted Cash Flow (5Y) | $301.58 | +3.6% |
| Dividend Discount Model (Multi-Stage) | $195.98 | -32.7% |
| Dividend Discount Model (Stable) | $136.63 | -53.1% |
| Earnings Power Value | $148.42 | -49.0% |
Is Zebra Technologies Corp (ZBRA) undervalued or overvalued?
With the current market price at $291.03, the stock appears to be moderately overvalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Zebra Technologies Corp'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 | 1.21 | 1.34 |
| Cost of equity | 9.4% | 12.4% |
| Cost of debt | 4.1% | 4.6% |
| Tax rate | 12.7% | 14.1% |
| Debt/Equity ratio | 0.15 | 0.15 |
| After-tax WACC | 8.7% | 11.3% |
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 | $302 | $16,628M | 75.7% |
| 10-Year Growth | $339 | $18,522M | 56.8% |
| 5-Year EBITDA | $380 | $20,627M | 80.4% |
| 10-Year EBITDA | $407 | $21,978M | 63.6% |
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 | $868M |
| Discount Rate (WACC) | 11.3% - 8.7% |
| Enterprise Value | $7,683M - $9,997M |
| Net Debt | $1,293M |
| Equity Value | $6,390M - $8,704M |
| Outstanding Shares | 51M |
| Fair Value | $126 - $171 |
| Selected Fair Value | $148.42 |
| Metric | Value |
|---|---|
| Market Capitalization | $14799M |
| Enterprise Value | $16092M |
| Trailing P/E | 26.96 |
| Forward P/E | 21.04 |
| Trailing EV/EBITDA | 17.25 |
| Current Dividend Yield | 15.73% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.15 |
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% | $101.65 |
| Discounted Cash Flow (5Y) | 25% | $75.39 |
| Dividend Discount Model (Multi-Stage) | 20% | $39.20 |
| Dividend Discount Model (Stable) | 15% | $20.49 |
| Earnings Power Value | 10% | $14.84 |
| Weighted Average | 100% | $251.57 |
Based on our comprehensive valuation analysis, Zebra Technologies Corp's weighted average intrinsic value is $251.57, which is approximately 13.6% below the current market price of $291.03.
Key investment considerations:
Given these factors, we believe Zebra Technologies Corp is currently moderately overvalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.