Assessing IDEX (IEX) Valuation After Q4 Beat Driven By Health And Science Strength And Share Buybacks

IDEX (IEX) shares were in focus after the company reported fourth quarter 2025 results that topped market expectations, supported by strong Health & Science Technologies demand and continued share repurchases.

See our latest analysis for IDEX.

The latest earnings beat and ongoing share repurchases have arrived alongside strong momentum in the share price. The 30 day share price return is 14.43% and the 90 day share price return is 25.22%, even though the 1 year total shareholder return is 9.56% and the 3 year total shareholder return is slightly negative at 2.56%. This suggests that recent optimism has picked up after a more muted stretch.

If this earnings update has you looking beyond IDEX, it could be a good time to broaden your search and check out 22 top founder-led companies as potential next ideas.

With IDEX now trading at $211.37, only about 3% below the average analyst price target and with an estimated 12% intrinsic discount, the key question is whether there is still a buying opportunity here or if the market is already pricing in future growth.

Most Popular Narrative: 6.4% Overvalued

Against IDEX's last close of $211.37, the most followed narrative points to a fair value of about $198.62, using an 8.63% discount rate and detailed long term forecasts.

The recent acquisition of Mott and its integration into IDEX's existing business operations are anticipated to enrich the company's capabilities and revenue streams. Mott's agreements, such as the $40 million multiyear wastewater filtration project, are expected to contribute positively to earnings.

Read the complete narrative.

Curious what kind of revenue path and margin profile need to line up for that fair value to work, and how rich a future earnings multiple is being assumed? The full narrative lays out a detailed playbook that connects those assumptions to today’s price and shows exactly where expectations are tightest.

Result: Fair Value of $198.62 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there are still pressure points here, including tariff headwinds tied to 2025 volumes and softer organic demand in areas like semiconductors and agriculture, which could unsettle that story.

Find out about the key risks to this IDEX narrative.

Another View: Cash Flows Point a Different Way

While the most popular narrative suggests IDEX is about 6.4% overvalued at a fair value of roughly $198.62, our DCF model tells a different story. On that framework, the shares trade about 11.7% below an estimated future cash flow value of $239.48, which frames today’s price as a possible discount instead of a premium. So which set of assumptions do you find more realistic?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out IDEX for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 53 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own IDEX Narrative

If you look at these numbers and come to a different conclusion, or simply prefer your own work, you can build a custom thesis in just a few minutes by starting with Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding IDEX.

Looking for more investment ideas?

If you are serious about tightening up your watchlist, now is the time to act and line up a few fresh, high quality ideas beside IDEX.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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