IMKTA
Ingles Markets, Incorporated
$85.59
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 35.7% below fair value
You pay
$85.59
Bear
$111.00
Fair
$133.20
Bull
$155.40
Bear
$111.00
+29.7%
$11.10 × 10x P/E
Fair
$133.20
+55.6%
$11.10 × 12x P/E
Bull
$155.40
+81.6%
$11.10 × 14x P/E
Adjust Assumptions
12.0x
11.1$
Key Value Driver
Normalized P/E multiple (12x base case)
Implied Market Multiple
7.7x
Summary
Applying a 12x P/E to adjusted EPS of $11.10, the base-case value is $133.20 per share.
Warnings
The company's reported profits differ from official accounting profits by 152%. Check what costs are being left out of the adjusted number.
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