CRI
Carter's, Inc.
$37.23
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 53.2% below fair value
You pay
$37.23
Bear
$63.63
Fair
$79.53
Bull
$95.44
Bear
$63.63
+70.9%
$6.24 × 12x P/E
Fair
$79.53
+113.6%
$6.24 × 15x P/E
Bull
$95.44
+156.3%
$6.24 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
6.0x
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 $37.33 from 24 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $79.53 per share.
Warnings
The company's reported profits differ from official accounting profits by 141%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $37.33 (from 24 analysts). Our estimate is 151% 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