IDT
IDT Corporation
$82.16
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 27.2% above fair value
You pay
$82.16
Bear
$51.65
Fair
$64.57
Bull
$77.48
Bear
$51.65
-37.1%
$3.46 × 15x P/E
Fair
$64.57
-21.4%
$3.46 × 19x P/E
Bull
$77.48
-5.7%
$3.46 × 22x P/E
Adjust Assumptions
18.7x
3.46$
Key Value Driver
Normalized P/E multiple (19x base case)
Implied Market Multiple
23.7x
Summary
Applying a 19x P/E to adjusted EPS of $3.46, the base-case value is $64.57 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