BKI
Black Knight, Inc.
$75.78
Stable Earnings Power
50%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 509.3% above fair value
You pay
$75.78
Bear
$10.41
Fair
$12.44
Bull
$14.46
Bear
$10.41
-86.3%
$0.58 × 18x P/E
Fair
$12.44
-83.6%
$0.58 × 22x P/E
Bull
$14.46
-80.9%
$0.58 × 25x P/E
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
131.0x
Summary
Applying a 22x P/E to adjusted EPS of $0.58, the base-case value is $12.44 per share.
Warnings
The company's reported profits differ from official accounting profits by 345%. 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