DAKT
Daktronics, Inc.
$20.89
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 824.6% above fair value
You pay
$20.89
Bear
$1.81
Fair
$2.26
Bull
$2.71
Bear
$1.81
-91.3%
$0.15 × 12x P/E
Fair
$2.26
-89.2%
$0.15 × 15x P/E
Bull
$2.71
-87.0%
$0.15 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
138.7x
Summary
Applying a 15x P/E to adjusted EPS of $0.15, the base-case value is $2.26 per share.
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