FDP
Fresh Del Monte Produce Inc.
$33.29
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 72.5% above fair value
You pay
$33.29
Bear
$15.44
Fair
$19.30
Bull
$23.16
Bear
$15.44
-53.6%
$1.93 × 8x P/E
Fair
$19.30
-42.0%
$1.93 × 10x P/E
Bull
$23.16
-30.4%
$1.93 × 12x P/E
Key Value Driver
Normalized P/E multiple (10x base case)
Implied Market Multiple
17.3x
Summary
Applying a 10x P/E to adjusted EPS of $1.93, the base-case value is $19.30 per share.
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