CWK
Cushman & Wakefield plc
$12.89
Stable Earnings Power
75%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 14.0% above fair value
You pay
$12.89
Bear
$9.04
Fair
$11.30
Bull
$13.56
Bear
$9.04
-29.9%
$0.60 × 12x P/E
Fair
$11.30
-12.3%
$0.60 × 15x P/E
Bull
$13.56
+5.2%
$0.60 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
21.6x
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 $18.40 from 16 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $11.30 per share.
Warnings
The company's reported profits differ from official accounting profits by 57%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $18.40 (from 16 analysts). Our estimate is 51% 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