CWK
Cushman & Wakefield plc
$13.04
Stable Earnings Power
75%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 55.2% above fair value
You pay
$13.04
Bear
$6.72
Fair
$8.40
Bull
$10.08
Bear
$6.72
-48.5%
$0.56 × 12x P/E
Fair
$8.40
-35.6%
$0.56 × 15x P/E
Bull
$10.08
-22.7%
$0.56 × 18x P/E
Adjust Assumptions
15.0x
0.56$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
23.3x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (16 analysts)
$16.00
Divergence from AlphaVal
48%
Summary
Applying a 15x P/E to adjusted EPS of $0.56, the base-case value is $8.40 per share.
Warnings
The company's reported profits differ from official accounting profits by 47%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $16.00 (from 16 analysts). Our estimate is 48% below 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