INDV
Indivior Pharmaceuticals Inc
$37.53
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 26.2% above fair value
You pay
$37.53
Bear
$25.48
Fair
$29.73
Bull
$33.98
Bear
$25.48
-32.1%
$1.64 × 16x P/E
Fair
$29.73
-20.8%
$1.64 × 18x P/E
Bull
$33.98
-9.5%
$1.64 × 21x P/E
Key Value Driver
Normalized P/E multiple (18x base case)
Implied Market Multiple
22.9x
Summary
Applying a 18x P/E to adjusted EPS of $1.64, the base-case value is $29.73 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