CVGW
Calavo Growers, Inc.
$26.45
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 23.0% below fair value
You pay
$26.45
Bear
$28.30
Fair
$34.37
Bull
$40.43
Bear
$28.30
+7.0%
$2.13 × 14x P/E
Fair
$34.37
+29.9%
$2.13 × 17x P/E
Bull
$40.43
+52.9%
$2.13 × 20x P/E
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
12.4x
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 $27.00 from 10 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $34.37 per share.
Warnings
The company's reported profits differ from official accounting profits by 92%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $27.00 (from 10 analysts). Our estimate is 34% 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