BOC
Boston Omaha Corporation
$14.33
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 87.3% above fair value
You pay
$14.33
Bear
$6.12
Fair
$7.65
Bull
$9.18
Bear
$6.12
-57.3%
$0.34 × 18x P/E
Fair
$7.65
-46.6%
$0.34 × 22x P/E
Bull
$9.18
-35.9%
$0.34 × 27x P/E
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
42.1x
Summary
Applying a 22x P/E to adjusted EPS of $0.34, the base-case value is $7.65 per share.
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