EPAC
Enerpac Tool Group Corp.
$34.52
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 18.5% above fair value
You pay
$34.52
Bear
$23.32
Fair
$29.14
Bull
$34.97
Bear
$23.32
-32.5%
$1.77 × 12x P/E
Fair
$29.14
-15.6%
$1.77 × 15x P/E
Bull
$34.97
+1.3%
$1.77 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
19.5x
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 $37.00 from 19 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $29.14 per share.
Warnings
Wall Street's average price target is $37.00 (from 19 analysts). Our estimate is 28% 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