CCSI
Consensus Cloud Solutions, Inc.
$37.85
Stable Earnings Power
50%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 54.1% below fair value
You pay
$37.85
Bear
$69.07
Fair
$82.50
Bull
$95.94
Bear
$69.07
+82.5%
$4.51 × 18x P/E
Fair
$82.50
+118.0%
$4.51 × 22x P/E
Bull
$95.94
+153.5%
$4.51 × 25x P/E
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
8.4x
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 $25.00 from 6 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $82.50 per share.
Warnings
Wall Street's average price target is $25.00 (from 6 analysts). Our estimate is 288% 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