BB
BlackBerry Limited
$8.54
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 10.6% above fair value
You pay
$8.54
Bear
$6.47
Fair
$7.72
Bull
$8.99
Bear
$6.47
-24.2%
$0.33 × 18x P/E
Fair
$7.72
-9.6%
$0.33 × 22x P/E
Bull
$8.99
+5.3%
$0.33 × 25x P/E
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
26.1x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $10.54 from 14 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $7.72 per share.
Warnings
The company's reported profits differ from official accounting profits by 263%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $10.54 (from 14 analysts). Our estimate is 33% 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