HELE
Helen of Troy Limited
$25.65
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 74.4% below fair value
You pay
$25.65
Bear
$82.36
Fair
$100.01
Bull
$117.66
Bear
$82.36
+221.1%
$7.03 × 14x P/E
Fair
$100.01
+289.9%
$7.03 × 17x P/E
Bull
$117.66
+358.7%
$7.03 × 20x P/E
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
3.6x
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 $22.00 from 11 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $100.01 per share.
Warnings
Wall Street's average price target is $22.00 (from 11 analysts). Our estimate is 443% 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