INDV
Indivior Pharmaceuticals Inc
$35.89
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 41.4% above fair value
You pay
$35.89
Bear
$21.76
Fair
$25.39
Bull
$29.01
Bear
$21.76
-39.4%
$1.64 × 13x P/E
Fair
$25.39
-29.3%
$1.64 × 15x P/E
Bull
$29.01
-19.2%
$1.64 × 18x P/E
Adjust Assumptions
15.5x
1.64$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
21.9x
Summary
Applying a 15x P/E to adjusted EPS of $1.64, the base-case value is $25.39 per share.
Warnings
The company pays out 503% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
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