STE

STERIS plc (Ireland)Healthcare / Medical DevicesINTACT

STERIS plc provides infection prevention products and services in the United States, Ireland, and internationally. It operates through three segments: Healthcare, Applied Sterilization Technologies, and Life Sciences. The company offers cleaning chemistries and sterility assurance products, automated endoscope reprocessing system and tracking products, endoscopy accessories, instruments, washers, and sterilizers and other pieces of capital equipment, as well as equipment used directly in the procedure rooms, including surgical tables, lights, equipment management services, and connectivity solutions; and various preventive maintenance programs, repair services, custom process improvement consulting, and outsourced instrument sterile processing, as well as instrument, devices, and endoscope repair and maintenance services. It also provides process controls and monitoring systems, as well as integrated sterilization equipment, such as accelerators, product handling, and automation; and sterilization modalities, product development, materials testing, and process validation, as well as support services for sterilization equipment and control systems comprising installation, preventive maintenance, updates, repairs, and troubleshooting. In addition, the company offers pharmaceutical detergents, cleanroom disinfectants and sterilants, pharmaceutical grade and research sterilizers and washers, sterility assurance and maintenance products, vaporized hydrogen peroxide room decontamination systems and sterilizers, and high purity water and pure steam generators; and preventive maintenance programs and repair services to support the operation of capital equipment. It serves healthcare providers, medical device and pharmaceutical manufacturers, biopharmaceutical manufacturing facilities, and hospitals. The company was formerly known as New STERIS Limited and changed its name to STERIS plc in November 2015. STERIS plc was founded in 1985 and is headquartered in Mentor, Ohio.

Share Price
$211.06
52W: $195.14 - $269.44
DCF Fair Value
$170.39
-23.9% Premium
P/E (TTM)
25.8x
ROIC
14.4%
Operating Margin
19.2%
FCF Yield
3.9%
Debt / Equity
0.28x
Piotroski Score
9/9
Altman Z-Score
3.43
Market Cap
$20.6B

Price vs. Intrinsic Value Corridor

Overvalued vs DCF ($170.39)

Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.

Period Return (1Y)
()
Period Range
$ - $
DCF Fair Value
$170.39
MOS Buy Target (-25%)
$127.79
Valuation Overlays:

2-Stage Discounted Cash Flow (DCF) Workbench

Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.

Current Market Price
$211.06
DCF Fair Value
$170.15
-24% Premium
$799M
$100M$799M (Reported)$50,000M
9.6%
-5%10% (Target)35%
4.5%
0%5%20%
9.0%
6%9% (Standard)15% (High Risk)
2.5%
1% (GDP Floor)2.5% (Inflation)4.0%
$1,500M
-$100B CashBalance Sheet+$150B Debt
10-Yr PV of Cash Flows
$7.7B
PV of Terminal Value
$10.5B
Implied Enterprise Value
$18.2B
Implied Equity Value
$16.7B
YearYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 10
Projected FCF ($M)$876$960$1,052$1,153$1,264$1,320$1,380$1,442$1,507$1,575
Present Value (PV)$803$808$812$817$821$787$755$724$694$665

Benjamin Graham & Buffett Value Models

Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.

Graham Number-80.9% Premium
$116.64

Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.

EPS: $8.18BVPS: $73.92
Revised Graham Formula-22.9% Premium
$171.71

Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.

Buffett Owner Earnings3.7% Yield
$7.75 / share

True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.

Total: $0.8BYield: 3.7%

Reverse DCF: Market Growth Expectation

FAIR BARRIER
9.1% CAGR (Next 10 Yrs)

At the current price of $211.06, the market is assuming the business will compound Free Cash Flow at 9.1% per year for the next decade with a 9% hurdle rate.

Value Investor Verdict
ℹ Fair expectations: Requires steady execution.
Autonomous Thesis Underwriting

Surveil STE with Mathematical Margin of Safety Rules

Set non-negotiable floor rules for STERIS plc (Ireland). If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.

Buffett Quality

ROIC > 15% • Margin > 15% • D/E < 0.5x

Margin Floor Guard

Current Margin 19.2% • Floor > 10%

Solvency Guard

Altman-Z > 2.6 • Current Ratio > 1.5x

Frequently Asked Questions: STERIS plc (Ireland) (STE) Intrinsic Valuation

Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for STERIS plc (Ireland).

Based on institutional multi-stage Discounted Cash Flow (DCF) modeling on audited SEC cash flows, STERIS plc (Ireland) has an estimated DCF intrinsic fair value of $170.39 per share compared to its current market price of $211.06. This represents an estimated 23.9% premium over fair value. Additionally, its classic Benjamin Graham Number stands at $116.64.

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