AMWD American Woodmark Corporation
$48.09
Stable Earnings Power 80%
P/Adj-EPS × Normalized Multiple
Strong · Conviction

Undervalued

Trading 53.8% below fair value

You pay $48.09
Bear $91.00
Fair $104.00
Bull $117.00
Bear $91.00 +89.2% $6.50 × 14x P/E
Fair $104.00 +116.3% $6.50 × 16x P/E
Bull $117.00 +143.3% $6.50 × 18x P/E

Adjust Assumptions

16.0x
6.5$

Key Value Driver

Normalized P/E multiple (16x base case)

Implied Market Multiple 7.4x

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above.

Average Target (10 analysts) $47.00
Divergence from AlphaVal 121%

Summary

Applying a 16x P/E to adjusted EPS of $6.50, the base-case value is $104.00 per share.

Warnings

Wall Street's average price target is $47.00 (from 10 analysts). Our estimate is 121% above 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