CPRI
Capri Holdings Limited
$18.48
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 65.7% below fair value
You pay
$18.48
Bear
$43.06
Fair
$53.82
Bull
$64.58
Bear
$43.06
+133.0%
$4.60 × 12x P/E
Fair
$53.82
+191.2%
$4.60 × 15x P/E
Bull
$64.58
+249.5%
$4.60 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
4.0x
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 $25.63 from 53 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $53.82 per share.
Warnings
Wall Street's average price target is $25.63 (from 53 analysts). Our estimate is 169% 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