HCKT
The Hackett Group, Inc.
$11.11
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 38.9% below fair value
You pay
$11.11
Bear
$14.54
Fair
$18.18
Bull
$21.82
Bear
$14.54
+30.9%
$1.24 × 12x P/E
Fair
$18.18
+63.6%
$1.24 × 15x P/E
Bull
$21.82
+96.4%
$1.24 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
9.0x
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 $16.50 from 5 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $18.18 per share.
Warnings
The company's reported profits differ from official accounting profits by 164%. Check what costs are being left out of the adjusted number.
The company pays out 102% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
Dividend-based valuation: $9.31 (below our primary estimate by 50%). Large gaps may signal the dividend doesn't reflect full earning power.
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