HCKT
The Hackett Group, Inc.
$12.22
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 34.3% below fair value
You pay
$12.22
Bear
$14.88
Fair
$18.60
Bull
$22.32
Bear
$14.88
+21.8%
$1.24 × 12x P/E
Fair
$18.60
+52.2%
$1.24 × 15x P/E
Bull
$22.32
+82.7%
$1.24 × 18x P/E
Adjust Assumptions
15.0x
1.24$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
9.9x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (5 analysts)
$16.50
Divergence from AlphaVal
13%
Summary
Applying a 15x P/E to adjusted EPS of $1.24, the base-case value is $18.60 per share. DDM cross-check: $8.50.
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: $8.50 (below our primary estimate by 54%). 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