CPB
Campbell Soup Company
$20.58
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 55.2% below fair value
You pay
$20.58
Bear
$37.86
Fair
$45.96
Bull
$54.08
Bear
$37.86
+83.9%
$3.11 × 14x P/E
Fair
$45.96
+123.3%
$3.11 × 17x P/E
Bull
$54.08
+162.8%
$3.11 × 20x P/E
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
6.6x
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 29 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $45.96 per share.
Warnings
The company's reported profits differ from official accounting profits by 55%. Check what costs are being left out of the adjusted number.
Dividend-based valuation: $22.71 (below our primary estimate by 57%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $25.00 (from 29 analysts). Our estimate is 112% 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