CHECK POINT SOFTWARE TECHNOLOGIES LTD (CHKP)

Services-Prepackaged Software

Latest Price

$127.13

TTM P/E

Normalized P/E

Div Yield

Book Value

P/B Ratio

Valuation metrics

EPS: $9.62

Book value / share: $27.29

Formula: √(22.5 × EPS × BVPS)

Graham Number

$76.86

40% downside

Norm. op. income: $884M (median of 7yr)

Tax rate: 14%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$89.07

30% downside

Base FCF: $1.1B (median of recent 5yr)

Growth: 2%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$161.25

+27% upside

EPS: $9.62

Target P/E: 15×

Formula: EPS × P/E

P/E Fair Value

$144.30

+14% upside