DAR
Darling Ingredients Inc.
$58.60
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 21.5% below fair value
You pay
$58.60
Bear
$61.45
Fair
$74.62
Bull
$87.79
Bear
$61.45
+4.9%
$3.90 × 16x P/E
Fair
$74.62
+27.3%
$3.90 × 20x P/E
Bull
$87.79
+49.8%
$3.90 × 23x P/E
Key Value Driver
Normalized P/E multiple (20x base case)
Implied Market Multiple
15.0x
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 $65.33 from 25 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $74.62 per share.
Warnings
The company's reported profits differ from official accounting profits by 900%. Check what costs are being left out of the adjusted number.
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