DTM
DT Midstream, Inc.
$143.44
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 37.3% above fair value
You pay
$143.44
Bear
$83.60
Fair
$104.50
Bull
$125.40
Bear
$83.60
-41.7%
$5.82 × 13x P/E
Fair
$104.50
-27.1%
$5.82 × 16x P/E
Bull
$125.40
-12.6%
$5.82 × 19x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
24.7x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $151.20 from 14 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $104.50 per share.
Warnings
The company's reported profits differ from official accounting profits by 31%. Check what costs are being left out of the adjusted number.
Dividend-based valuation: $243.66 (above our primary estimate by 162%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $151.20 (from 14 analysts). Our estimate is 39% 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