CMBT Cmb.Tech N.V.
$19.48
Stable Earnings Power 40%
P/Adj-EPS × Normalized Multiple
Moderate · Conviction

Undervalued

Trading 27.4% below fair value

You pay $19.48
Bear $21.46
Fair $26.82
Bull $32.18
Bear $21.46 +10.1% $1.79 × 12x P/E
Fair $26.82 +37.7% $1.79 × 15x P/E
Bull $32.18 +65.2% $1.79 × 18x P/E

Adjust Assumptions

15.0x
1.79$

Key Value Driver

Normalized P/E multiple (15x base case)

Implied Market Multiple 10.9x

Summary

Applying a 15x P/E to adjusted EPS of $1.79, the base-case value is $26.82 per share.

Warnings

The company's reported profits differ from official accounting profits by 145%. Check what costs are being left out of the adjusted number.
The company pays out 125% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.

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