Using the industry peer median P/E multiple (trailing + forward), Henry Schein, Inc. (HSIC) has a fair value of $104.83 based on 3 comparable companies in the Medical - Distribution industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Henry Schein, Inc.HSIC | 8,973 | 22.5x | 15.0x |
| McKesson CorporationMCK | 107,034 | 33.7x | 22.2x |
| Cencora, Inc.COR | 61,941 | 40.0x | 18.1x |
| Cardinal Health, Inc.CAH | 49,047 | 32.3x | 20.2x |
| Industry Median | 33.7x | 20.2x | |
| (*) Profit after tax | 398 | 599 | |
| Equity Value | 13,419 | 12,100 | |
| (/) Outstanding shares | 122 | 122 | |
| Fair Price | $110 | $99 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.