EPC
Edgewell Personal Care Company
$28.66
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 14.4% below fair value
You pay
$28.66
Bear
$27.58
Fair
$33.49
Bull
$39.40
Bear
$27.58
-3.8%
$1.97 × 14x P/E
Fair
$33.49
+16.9%
$1.97 × 17x P/E
Bull
$39.40
+37.5%
$1.97 × 20x P/E
Adjust Assumptions
17.0x
1.97$
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
14.5x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (17 analysts)
$29.83
Divergence from AlphaVal
12%
Summary
Applying a 17x P/E to adjusted EPS of $1.97, the base-case value is $33.49 per share.
Warnings
The company's reported profits differ from official accounting profits by 272%. Check what costs are being left out of the adjusted number.
The company pays out 113% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
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