DBD Diebold Nixdorf, Incorporated
$74.30
Stable Earnings Power 40%
P/Adj-EPS × Normalized Multiple
Strong · Conviction

Undervalued

Trading 54.6% below fair value

You pay $74.30
Bear $136.94
Fair $163.56
Bull $190.19
Bear $136.94 +84.3% $8.35 × 18x P/E
Fair $163.56 +120.1% $8.35 × 22x P/E
Bull $190.19 +156.0% $8.35 × 25x P/E

Key Value Driver

Normalized P/E multiple (22x base case)

Implied Market Multiple 8.9x

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 $100.00 from 13 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $163.56 per share.

Warnings

The company's reported profits differ from official accounting profits by 229%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $100.00 (from 13 analysts). Our estimate is 79% 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