IDT
IDT Corporation
$68.99
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 1.9% above fair value
You pay
$68.99
Bear
$54.18
Fair
$67.72
Bull
$81.27
Bear
$54.18
-21.5%
$3.01 × 18x P/E
Fair
$67.72
-1.8%
$3.01 × 22x P/E
Bull
$81.27
+17.8%
$3.01 × 27x P/E
Adjust Assumptions
22.5x
3.01$
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
22.9x
Summary
Applying a 22x P/E to adjusted EPS of $3.01, the base-case value is $67.72 per share.
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