CRI
Carter's Inc.
$40.41
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 52.4% below fair value
You pay
$40.41
Bear
$74.34
Fair
$84.96
Bull
$95.58
Bear
$74.34
+84.0%
$6.24 × 14x P/E
Fair
$84.96
+110.3%
$6.24 × 16x P/E
Bull
$95.58
+136.5%
$6.24 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
6.5x
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 $40.33 from 24 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $84.96 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 $40.33 (from 24 analysts). Our estimate is 148% 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