KN
Knowles Corporation
$33.46
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 197.4% above fair value
You pay
$33.46
Bear
$9.00
Fair
$11.25
Bull
$13.50
Bear
$9.00
-73.1%
$0.50 × 18x P/E
Fair
$11.25
-66.4%
$0.50 × 22x P/E
Bull
$13.50
-59.7%
$0.50 × 27x P/E
Adjust Assumptions
22.5x
0.5$
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
66.9x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (15 analysts)
$42.50
Divergence from AlphaVal
74%
Summary
Applying a 22x P/E to adjusted EPS of $0.50, the base-case value is $11.25 per share.
Warnings
Wall Street's average price target is $42.50 (from 15 analysts). Our estimate is 74% below the consensus -- consider that gap carefully.
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