IMKTA
Ingles Markets, Incorporated
$88.42
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 33.6% below fair value
You pay
$88.42
Bear
$111.00
Fair
$133.20
Bull
$155.40
Bear
$111.00
+25.5%
$11.10 × 10x P/E
Fair
$133.20
+50.6%
$11.10 × 12x P/E
Bull
$155.40
+75.8%
$11.10 × 14x P/E
Key Value Driver
Normalized P/E multiple (12x base case)
Implied Market Multiple
8.0x
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