HUN
Huntsman Corporation
$14.51
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 38.7% below fair value
You pay
$14.51
Bear
$18.93
Fair
$23.66
Bull
$28.39
Bear
$18.93
+30.5%
$1.89 × 12x P/E
Fair
$23.66
+63.1%
$1.89 × 15x P/E
Bull
$28.39
+95.7%
$1.89 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
7.7x
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 $12.80 from 33 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $23.66 per share.
Warnings
Wall Street's average price target is $12.80 (from 33 analysts). Our estimate is 121% 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