FELE
Franklin Electric Co., Inc.
$99.03
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 99.9% above fair value
You pay
$99.03
Bear
$39.63
Fair
$49.54
Bull
$59.45
Bear
$39.63
-60.0%
$3.22 × 12x P/E
Fair
$49.54
-50.0%
$3.22 × 15x P/E
Bull
$59.45
-40.0%
$3.22 × 18x P/E
Adjust Assumptions
15.4x
3.22$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
30.8x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (11 analysts)
$114.50
Divergence from AlphaVal
57%
Summary
Applying a 15x P/E to adjusted EPS of $3.22, the base-case value is $49.54 per share. DDM cross-check: $524.49.
Warnings
Dividend-based valuation: $524.49 (above our primary estimate by 959%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $114.50 (from 11 analysts). Our estimate is 57% 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