KFRC
Kforce Inc.
$50.96
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 8.5% above fair value
You pay
$50.96
Bear
$37.56
Fair
$46.95
Bull
$56.34
Bear
$37.56
-26.3%
$3.13 × 12x P/E
Fair
$46.95
-7.9%
$3.13 × 15x P/E
Bull
$56.34
+10.6%
$3.13 × 18x P/E
Adjust Assumptions
15.0x
3.13$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
16.3x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (10 analysts)
$59.00
Divergence from AlphaVal
20%
Summary
Applying a 15x P/E to adjusted EPS of $3.13, the base-case value is $46.95 per share. DDM cross-check: $113.61.
Warnings
The company's reported profits differ from official accounting profits by 60%. Check what costs are being left out of the adjusted number.
The company pays out 81% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
Dividend-based valuation: $113.61 (above our primary estimate by 142%). Large gaps may signal the dividend doesn't reflect full earning power.
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