CC
The Chemours Company
$18.51
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 60.6% below fair value
You pay
$18.51
Bear
$37.55
Fair
$46.94
Bull
$56.32
Bear
$37.55
+102.9%
$3.60 × 12x P/E
Fair
$46.94
+153.6%
$3.60 × 15x P/E
Bull
$56.32
+204.3%
$3.60 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
5.1x
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 $25.75 from 20 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $46.94 per share.
Warnings
Wall Street's average price target is $25.75 (from 20 analysts). Our estimate is 110% above 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