EYE National Vision Holdings, Inc.
$19.29
Stable Earnings Power 80%
P/Adj-EPS × Normalized Multiple
Strong · Conviction

Overvalued

Trading 40.6% above fair value

You pay $19.29
Bear $12.00
Fair $13.72
Bull $15.43
Bear $12.00 -37.8% $0.59 × 14x P/E
Fair $13.72 -28.9% $0.59 × 16x P/E
Bull $15.43 -20.0% $0.59 × 18x P/E

Key Value Driver

Normalized P/E multiple (16x base case)

Implied Market Multiple 32.7x

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 $30.83 from 14 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $13.72 per share.

Warnings

The company's reported profits differ from official accounting profits by 59%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $30.83 (from 14 analysts). Our estimate is 69% 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