ASO Academy Sports and Outdoors, Inc.
$53.98
Stable Earnings Power 80%
P/Adj-EPS × Normalized Multiple
Moderate · Conviction

Undervalued

Trading 39.1% below fair value

You pay $53.98
Bear $77.56
Fair $88.64
Bull $99.72
Bear $77.56 +43.7% $5.54 × 14x P/E
Fair $88.64 +64.2% $5.54 × 16x P/E
Bull $99.72 +84.7% $5.54 × 18x P/E

Adjust Assumptions

16.0x
5.54$

Key Value Driver

Normalized P/E multiple (16x base case)

Implied Market Multiple 9.7x

Analyst Consensus (External Reference)

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

Average Target (22 analysts) $58.13
Divergence from AlphaVal 52%

Summary

Applying a 16x P/E to adjusted EPS of $5.54, the base-case value is $88.64 per share.

Warnings

ℹ Wall Street's average price target is $58.13 (from 22 analysts). Our estimate is 52% 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