HDSN
Hudson Technologies, Inc.
$5.06
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 54.0% below fair value
You pay
$5.06
Bear
$8.79
Fair
$10.99
Bull
$13.19
Bear
$8.79
+73.7%
$0.69 × 13x P/E
Fair
$10.99
+117.2%
$0.69 × 17x P/E
Bull
$13.19
+160.7%
$0.69 × 20x P/E
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
7.3x
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 $9.00 from 8 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $10.99 per share.
Warnings
The company's reported profits differ from official accounting profits by 86%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $9.00 (from 8 analysts). Our estimate is 28% above 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