DTM
DT Midstream, Inc.
$124.01
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 86.6% above fair value
You pay
$124.01
Bear
$53.16
Fair
$66.45
Bull
$79.74
Bear
$53.16
-57.1%
$4.43 × 12x P/E
Fair
$66.45
-46.4%
$4.43 × 15x P/E
Bull
$79.74
-35.7%
$4.43 × 18x P/E
Adjust Assumptions
15.0x
4.43$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
28.0x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (15 analysts)
$150.71
Divergence from AlphaVal
56%
Summary
Applying a 15x P/E to adjusted EPS of $4.43, the base-case value is $66.45 per share. DDM cross-check: $253.45.
Warnings
Dividend-based valuation: $253.45 (above our primary estimate by 281%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $150.71 (from 15 analysts). Our estimate is 56% 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