STERIS plc (STE)

Orthopedic, Prosthetic & Surgical Appliances & Supplies

Latest Price

$228.40

TTM P/E

28.80

Normalized P/E

49.93

Div Yield

1.08%

Book Value

72.78

P/B Ratio

3.14

Valuation metrics

EPS: $7.93

Book value / share: $73.45

Formula: √(22.5 × EPS × BVPS)

Graham Number

$114.48

50% downside

Norm. op. income: $548M (median of 7yr)

Tax rate: 23%

Discount rate: 10%

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

Earnings Power Value

$27.81

88% downside

Base FCF: $613M (median of recent 5yr)

Growth: 22%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$370.63

+62% upside

EPS: $7.93

Target P/E: 50×

Formula: EPS × P/E

P/E Fair Value

$396.50

+74% upside