EYE National Vision Holdings, Inc.
$17.13
Stable Earnings Power 80%
P/Adj-EPS × Normalized Multiple
Strong · Conviction

Overvalued

Trading 189.4% above fair value

You pay $17.13
Bear $5.18
Fair $5.92
Bull $6.66
Bear $5.18 -69.8% $0.37 × 14x P/E
Fair $5.92 -65.4% $0.37 × 16x P/E
Bull $6.66 -61.1% $0.37 × 18x P/E

Adjust Assumptions

16.0x
0.37$

Key Value Driver

Normalized P/E multiple (16x base case)

Implied Market Multiple 46.3x

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above.

Average Target (14 analysts) $27.25
Divergence from AlphaVal 78%

Summary

Applying a 16x P/E to adjusted EPS of $0.37, the base-case value is $5.92 per share.

Warnings

Wall Street's average price target is $27.25 (from 14 analysts). Our estimate is 78% 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