DECK Deckers Outdoor Corporation
$106.49
Stable Earnings Power 80%
P/Adj-EPS × Normalized Multiple
Moderate · Conviction

Undervalued

Trading 27.2% below fair value

You pay $106.49
Bear $127.96
Fair $146.24
Bull $164.53
Bear $127.96 +20.2% $7.03 × 20x P/E
Fair $146.24 +37.3% $7.03 × 23x P/E
Bull $164.53 +54.5% $7.03 × 26x P/E

Key Value Driver

Normalized P/E multiple (23x base case)

Implied Market Multiple 15.2x

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 $120.60 from 56 analysts, using a 35% weight on analyst consensus. That produces an estimated intrinsic value of $146.24 per share.

Warnings

Wall Street's average price target is $120.60 (from 56 analysts). Our estimate is 33% 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