* Note: Prices are in Million (M) USD.
Description:
Steris Corporation is an American Irish-domiciled medical equipment company specializing in sterilization and surgical products for the US healthcare system.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $280 M
Debt : $1,939 M
EBITDA : $1,408 M
Net Debt (Debt - Cash): $1,659 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: Healthcare
Industry: Medical instruments & supplies
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 22.78
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Error: Invalid cash flow data provided.Using default values for calculation.
Based on default values, 1 points assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2025-03-31): $5,460 M
Revenue 5 Years Ago (2020-03-31): $3,031 M
Total Growth over 5 Years: 80.1%
5-Year Revenue CAGR (Historical): 12.5%
Forward 5-Year CAGR (Tapered): 10.0%
Since historical Revenue CAGR is between 10 - 15, 3 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2025-03-31): $99 M
Share Count 5 Years Ago (2021-03-31): $86 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $11.04
Trailing 12-Month Earnings Per Share (EPS): $10.09
Average Earnings Per Share (EPS): $10.57
Dividend Per Share (DPS): $2
Payout Ratio: 22%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 9.9%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $240.64
52-Week Low: $199.47
Threshold Price (15% Above 52-Week Low): $229.39
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $24,425 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 16 points to above STERIS plc (STE) stock.
Fair Value PE
12, Industry Based PE
18, Growth Based PE
15, ROE Based PE
9.89, Risk-Free Anchored PE (25% MoS)
18.2. Based on these 5 values, average assigned is
14.62. Value-Trades has assined P/E value
14.62. An average (Current Year EPS + Next Year EPS) earning per share is
$10.565.
Fair value using multiple P/Es (blended): $154.45 (PE 14.62 × EPS $10.57)
So the Final Fair Value is: $154.45
Understanding the Value-Trades P/E Blend (click to expand)
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What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $10.57
| Source |
P/E Ratio |
Implied Fair Value |
| Value-Trades Assigned | 14.62 | $154.46 |
