DD DuPont de Nemours, Inc.
$126.94
Stable Earnings Power 40%
P/Adj-EPS × Normalized Multiple
Moderate · Conviction

Fair Value

Trading 24.2% below fair value

You pay $126.94
Bear $134.06
Fair $167.57
Bull $201.09
Bear $134.06 +5.6% $7.82 × 17x P/E
Fair $167.57 +32.0% $7.82 × 21x P/E
Bull $201.09 +58.4% $7.82 × 26x P/E

Adjust Assumptions

21.4x
7.82$

Key Value Driver

Normalized P/E multiple (21x base case)

Implied Market Multiple 16.2x

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above.

Average Target (41 analysts) $97.00
Divergence from AlphaVal 73%

Summary

Applying a 21x P/E to adjusted EPS of $7.82, the base-case value is $167.57 per share.

Warnings

Wall Street's average price target is $97.00 (from 41 analysts). Our estimate is 73% 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