EPC
Edgewell Personal Care Company
$27.72
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 30.8% below fair value
You pay
$27.72
Bear
$32.99
Fair
$40.07
Bull
$47.14
Bear
$32.99
+19.0%
$2.68 × 14x P/E
Fair
$40.07
+44.5%
$2.68 × 17x P/E
Bull
$47.14
+70.1%
$2.68 × 20x P/E
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
10.3x
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 $23.50 from 17 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $40.07 per share.
Warnings
The company's reported profits differ from official accounting profits by 406%. 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.
Wall Street's average price target is $23.50 (from 17 analysts). Our estimate is 94% above 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