ALLT
Allot Ltd.
$8.96
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 419.9% above fair value
You pay
$8.96
Bear
$1.44
Fair
$1.72
Bull
$2.00
Bear
$1.44
-83.9%
$0.08 × 18x P/E
Fair
$1.72
-80.8%
$0.08 × 22x P/E
Bull
$2.00
-77.6%
$0.08 × 25x P/E
Adjust Assumptions
21.5x
0.08$
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
111.8x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (15 analysts)
$17.00
Divergence from AlphaVal
90%
Summary
Applying a 22x P/E to adjusted EPS of $0.08, the base-case value is $1.72 per share.
Warnings
Wall Street's average price target is $17.00 (from 15 analysts). Our estimate is 90% below the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples