Is IDEXX Laboratories Inc (IDXX) overvalued?
On Equity Rank's model estimate, IDXX trades 51% above its fair value. IDEXX Laboratories Inc (IDXX) last closed at $676.04; the multi-method model fair value is $447.24.
| Price | Model fair value | Price vs model |
|---|---|---|
| $676.04 | $447.24 | 51% above |
What the answer rests on
- 0 of 9 valuation methods put IDXX's value above its price and 9 put it below, so the methods mostly agree.
- To justify today's price, IDXX's free cash flow would need to grow about 24.0% a year for ten years (a reverse discounted cash flow). Over the last three years it actually grew 38.8% a year.
- IDXX trades at 47.1 times its last year's earnings, against a median of 37.5 for 26 profitable Life Sciences Tools companies.
- Over the past year the price sat below the model fair value on 0% of trading days. The gap ranged from 16% above to 81% 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 IDXX's fair value · What prices assume · Other companies