KVUE
Kenvue Inc.
$19.03
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 2.0% above fair value
You pay
$19.03
Bear
$15.37
Fair
$18.66
Bull
$21.96
Bear
$15.37
-19.2%
$1.09 × 14x P/E
Fair
$18.66
-1.9%
$1.09 × 17x P/E
Bull
$21.96
+15.4%
$1.09 × 20x P/E
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
17.4x
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 $19.00 from 14 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $18.66 per share.
Warnings
The company's reported profits differ from official accounting profits by 44%. Check what costs are being left out of the adjusted number.
The company pays out 110% 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