HUN
Huntsman Corporation
$11.13
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 53.4% below fair value
You pay
$11.13
Bear
$19.13
Fair
$23.90
Bull
$28.68
Bear
$19.13
+71.8%
$1.89 × 12x P/E
Fair
$23.90
+114.8%
$1.89 × 15x P/E
Bull
$28.68
+157.7%
$1.89 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
5.9x
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 $13.60 from 33 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $23.90 per share.
Warnings
Wall Street's average price target is $13.60 (from 33 analysts). Our estimate is 108% 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