BV
BrightView Holdings, Inc.
$12.59
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 24.6% above fair value
You pay
$12.59
Bear
$8.08
Fair
$10.11
Bull
$12.12
Bear
$8.08
-35.8%
$0.62 × 12x P/E
Fair
$10.11
-19.7%
$0.62 × 15x P/E
Bull
$12.12
-3.7%
$0.62 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
20.3x
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 $13.37 from 13 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $10.11 per share.
Warnings
Wall Street's average price target is $13.37 (from 13 analysts). Our estimate is 31% 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