KW
Kennedy-Wilson Holdings, Inc.
$10.92
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 29.3% below fair value
You pay
$10.92
Bear
$12.36
Fair
$15.45
Bull
$18.54
Bear
$12.36
+13.2%
$1.03 × 12x P/E
Fair
$15.45
+41.5%
$1.03 × 15x P/E
Bull
$18.54
+69.8%
$1.03 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
10.6x
Summary
Applying a 15x P/E to adjusted EPS of $1.03, the base-case value is $15.45 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