$TransMedics Group, Inc.(TMDX)$
PRICE TARGET: $195 --> $216
POTENTIAL UPSIDE: +76% ✅
"Q3 results were impressive, insane operating leverage, 16% margins in the weakest Q of the year. The earnings are bullish, but few will get it"
ASSUMPTIONS:
LTM Revenue: $0.566B
5Y Revenue CAGR: 23%
2030 Profit Margin: 23% --> 24%
2030 PE Ratio: 40
Shares outstanding: 0.0407B
Shares dilution: 2%/year
VALUATION:
Q3 2030 $TMDX SHARE PRICE =
0.566 * (1.23)^5 * 0.24 * 40 /
[0.0407 * (1.02)^5] = 340$
You can now choose the discount rate that you prefer, for Transmedics I want to use 12%
ACTUAL PRICE: $123
FAIR VALUE: $193
PRICE TARGET (1Y): $216
POTENTIAL UPSIDE: +73%
EXPECTED RETURNS: 22.6%/year
DIVIDEND YIELD: -
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