BV
BrightView Holdings, Inc.
$14.07
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 35.7% above fair value
You pay
$14.07
Bear
$8.30
Fair
$10.37
Bull
$12.44
Bear
$8.30
-41.0%
$0.62 × 12x P/E
Fair
$10.37
-26.3%
$0.62 × 15x P/E
Bull
$12.44
-11.6%
$0.62 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
22.7x
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 $14.70 from 13 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $10.37 per share.
Warnings
Wall Street's average price target is $14.70 (from 13 analysts). Our estimate is 37% 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