Envista Holdings Corp is scored 29 for moat and 40 for management. The management score rests on a return on invested capital of 1.2% and a gross margin of 55.0% — figures that describe returns closer to the cost of the capital behind them. Debt sits at 0.51x equity. A narrow moat alongside mixed management is a combination worth understanding before the price matters at all.
Three independent anchors set the price worth paying. Growth is modelled at 7.1% a year, the rate measured from the filings. The exit multiple assumed is 14.2x. That produces an intrinsic value of $4.05, a 10-CAP price of $15.38 and a payback time price of $16.97, with the value zone set at the highest of the three, $16.97. Today's price of $23.16 is 36% above it.
The price is above the value zone and the business scores 29 for moat and 40 for management. Neither test argues for paying up here.
| Price | $23.16 |
| Market cap | $3.8B |
| P/E ratio | 39.9x |
| Return on invested capital | 1.2% |
| Gross margin | 55.0% |
| Debt to equity | 0.51x |
| Free cash flow yield | 6.3% |
| Growth rate used | 7.1% |
| Growth rate measured | 7.0% |
| Exit multiple assumed | 14.2x |
| Company | Moat | Buy price |
| Cooper Companies (The) (COO) | 59 | $53.35 |
| West Pharmaceutical Services (WST) | 73 | $79.25 |
| Medline Inc-Cl A (MDLN) | 64 | $25.44 |
| ResMed (RMD) | 91 | $283.19 |
Every number above is built on assumptions that can be changed. In Moatly you can move the growth rate, the exit multiple and the margin of safety and watch every figure recalculate, so you are testing your own view of Envista Holdings Corp rather than accepting ours.