EPAC
Enerpac Tool Group Corp.
$35.13
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 8.5% above fair value
You pay
$35.13
Bear
$25.92
Fair
$32.39
Bull
$38.88
Bear
$25.92
-26.2%
$1.77 × 12x P/E
Fair
$32.39
-7.8%
$1.77 × 15x P/E
Bull
$38.88
+10.7%
$1.77 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
19.9x
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 $50.00 from 19 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $32.39 per share.
Warnings
Wall Street's average price target is $50.00 (from 19 analysts). Our estimate is 47% 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