Is Flex Ltd (FLEX) overvalued?
On Equity Rank's model estimate, FLEX trades 28% above its fair value. Flex Ltd (FLEX) last closed at $69.78; the multi-method model fair value is $54.38.
| Price | Model fair value | Price vs model |
|---|---|---|
| $69.78 | $54.38 | 28% above |
What the answer rests on
- 2 of 8 valuation methods put FLEX's value above its price and 6 put it below, so the methods mostly agree.
- To justify today's price, FLEX's free cash flow would need to grow about 15.2% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 49.5% a year.
- FLEX trades at 27.8 times its last year's earnings, against a median of 25.8 for 34 profitable Hardware companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 0% above to 205% above the model fair value.
Read this before relying on it
The model fair value is an estimate from published financial statements. It is not a forecast of where the price goes, and it can be wrong. Within 10% either side we call it close to fair value: valuation models are not precise enough to read more into a smaller gap. Our own lists have no proven edge over the market yet; the live record shows every result, misses included.
Every valuation method behind FLEX's fair value · What prices assume · Other companies