HVT
Haverty Furniture Companies, Inc.
$22.35
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 56.5% below fair value
You pay
$22.35
Bear
$44.98
Fair
$51.41
Bull
$57.83
Bear
$44.98
+101.3%
$3.36 × 14x P/E
Fair
$51.41
+130.0%
$3.36 × 16x P/E
Bull
$57.83
+158.8%
$3.36 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
6.7x
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 $42.00 from 6 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $51.41 per share.
Warnings
The company's reported profits differ from official accounting profits by 182%. Check what costs are being left out of the adjusted number.
The company pays out 110% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
Wall Street's average price target is $42.00 (from 6 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