AVT
Avnet, Inc.
$92.06
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 13.0% above fair value
You pay
$92.06
Bear
$65.16
Fair
$81.45
Bull
$97.74
Bear
$65.16
-29.2%
$5.43 × 12x P/E
Fair
$81.45
-11.5%
$5.43 × 15x P/E
Bull
$97.74
+6.2%
$5.43 × 18x P/E
Adjust Assumptions
15.0x
5.43$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
17.0x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (20 analysts)
$92.33
Divergence from AlphaVal
12%
Summary
Applying a 15x P/E to adjusted EPS of $5.43, the base-case value is $81.45 per share. DDM cross-check: $84.90.
Warnings
The company's reported profits differ from official accounting profits by 35%. Check what costs are being left out of the adjusted number.
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