DFIN
Donnelley Financial Solutions, Inc.
$48.30
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 26.6% below fair value
You pay
$48.30
Bear
$55.08
Fair
$65.79
Bull
$76.50
Bear
$55.08
+14.0%
$3.06 × 18x P/E
Fair
$65.79
+36.2%
$3.06 × 22x P/E
Bull
$76.50
+58.4%
$3.06 × 25x P/E
Adjust Assumptions
21.5x
3.06$
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
15.8x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (10 analysts)
$61.00
Divergence from AlphaVal
8%
Summary
Applying a 22x P/E to adjusted EPS of $3.06, the base-case value is $65.79 per share.
Warnings
The company's reported profits differ from official accounting profits by 166%. 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