HELE
Helen of Troy Limited
$27.99
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 72.3% below fair value
You pay
$27.99
Bear
$83.10
Fair
$100.91
Bull
$118.72
Bear
$83.10
+196.9%
$7.03 × 14x P/E
Fair
$100.91
+260.5%
$7.03 × 17x P/E
Bull
$118.72
+324.1%
$7.03 × 20x P/E
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
4.0x
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 $26.50 from 11 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $100.91 per share.
Warnings
Wall Street's average price target is $26.50 (from 11 analysts). Our estimate is 351% 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