IDT
IDT Corporation
$52.90
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 22.3% below fair value
You pay
$52.90
Bear
$54.46
Fair
$68.07
Bull
$81.69
Bear
$54.46
+2.9%
$3.03 × 18x P/E
Fair
$68.07
+28.7%
$3.03 × 22x P/E
Bull
$81.69
+54.4%
$3.03 × 27x P/E
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
17.5x
Summary
Applying a 22x P/E to adjusted EPS of $3.03, the base-case value is $68.07 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