CHWY
Chewy, Inc.
$18.22
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 82.4% above fair value
You pay
$18.22
Bear
$8.74
Fair
$9.99
Bull
$11.24
Bear
$8.74
-52.0%
$0.52 × 17x P/E
Fair
$9.99
-45.2%
$0.52 × 19x P/E
Bull
$11.24
-38.3%
$0.52 × 22x P/E
Adjust Assumptions
19.2x
0.52$
Key Value Driver
Normalized P/E multiple (19x base case)
Implied Market Multiple
35.0x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (39 analysts)
$28.85
Divergence from AlphaVal
65%
Summary
Applying a 19x P/E to adjusted EPS of $0.52, the base-case value is $9.99 per share.
Warnings
Wall Street's average price target is $28.85 (from 39 analysts). Our estimate is 65% 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