DMC
Del Monte Corporation
$28.73
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 48.9% above fair value
You pay
$28.73
Bear
$15.44
Fair
$19.30
Bull
$23.16
Bear
$15.44
-46.3%
$1.93 × 8x P/E
Fair
$19.30
-32.8%
$1.93 × 10x P/E
Bull
$23.16
-19.4%
$1.93 × 12x P/E
Key Value Driver
Normalized P/E multiple (10x base case)
Implied Market Multiple
14.9x
Summary
Applying a 10x P/E to adjusted EPS of $1.93, the base-case value is $19.30 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