CRI
Carter's Inc.
$32.36
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 65.4% below fair value
You pay
$32.36
Bear
$74.88
Fair
$93.60
Bull
$112.32
Bear
$74.88
+131.4%
$6.24 × 12x P/E
Fair
$93.60
+189.2%
$6.24 × 15x P/E
Bull
$112.32
+247.1%
$6.24 × 18x P/E
Adjust Assumptions
15.0x
6.24$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
5.2x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (24 analysts)
$40.75
Divergence from AlphaVal
130%
Summary
Applying a 15x P/E to adjusted EPS of $6.24, the base-case value is $93.60 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 $40.75 (from 24 analysts). Our estimate is 130% 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