DHT
DHT Holdings, Inc.
$23.60
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 20.1% above fair value
You pay
$23.60
Bear
$15.72
Fair
$19.65
Bull
$23.58
Bear
$15.72
-33.4%
$1.31 × 12x P/E
Fair
$19.65
-16.7%
$1.31 × 15x P/E
Bull
$23.58
-0.1%
$1.31 × 18x P/E
Adjust Assumptions
15.0x
1.31$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
18.0x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (16 analysts)
$28.00
Divergence from AlphaVal
30%
Summary
Applying a 15x P/E to adjusted EPS of $1.31, the base-case value is $19.65 per share.
Warnings
The company pays out 187% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
Wall Street's average price target is $28.00 (from 16 analysts). Our estimate is 30% below 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