INAC
Indigo Acquisition Corp.
$10.34
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 228.4% above fair value
You pay
$10.34
Bear
$2.52
Fair
$3.15
Bull
$3.78
Bear
$2.52
-75.6%
$0.21 × 12x P/E
Fair
$3.15
-69.5%
$0.21 × 15x P/E
Bull
$3.78
-63.5%
$0.21 × 18x P/E
Adjust Assumptions
15.0x
0.21$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
49.3x
Summary
Applying a 15x P/E to adjusted EPS of $0.21, the base-case value is $3.15 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