DMC
Del Monte Corporation
$29.51
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 57.0% above fair value
You pay
$29.51
Bear
$15.04
Fair
$18.80
Bull
$22.56
Bear
$15.04
-49.0%
$1.88 × 8x P/E
Fair
$18.80
-36.3%
$1.88 × 10x P/E
Bull
$22.56
-23.6%
$1.88 × 12x P/E
Adjust Assumptions
10.0x
1.88$
Key Value Driver
Normalized P/E multiple (10x base case)
Implied Market Multiple
15.7x
Summary
Applying a 10x P/E to adjusted EPS of $1.88, the base-case value is $18.80 per share.
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