KOP
Koppers Holdings Inc.
$40.36
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 16.7% below fair value
You pay
$40.36
Bear
$38.78
Fair
$48.47
Bull
$58.17
Bear
$38.78
-3.9%
$3.12 × 12x P/E
Fair
$48.47
+20.1%
$3.12 × 15x P/E
Bull
$58.17
+44.1%
$3.12 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
12.9x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $55.00 from 14 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $48.47 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