DD DuPont de Nemours, Inc.
$48.12
Stable Earnings Power 40%
P/Adj-EPS × Normalized Multiple
Strong · Conviction

Undervalued

Trading 41.9% below fair value

You pay $48.12
Bear $66.20
Fair $82.75
Bull $99.30
Bear $66.20 +37.6% $4.38 × 17x P/E
Fair $82.75 +72.0% $4.38 × 21x P/E
Bull $99.30 +106.4% $4.38 × 26x P/E

Key Value Driver

Normalized P/E multiple (21x base case)

Implied Market Multiple 11.0x

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 $56.86 from 41 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $82.75 per share.

Warnings

Wall Street's average price target is $56.86 (from 41 analysts). Our estimate is 65% 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