LEG
Leggett & Platt, Incorporated
$9.20
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 66.0% below fair value
You pay
$9.20
Bear
$23.66
Fair
$27.04
Bull
$30.42
Bear
$23.66
+157.2%
$1.69 × 14x P/E
Fair
$27.04
+193.9%
$1.69 × 16x P/E
Bull
$30.42
+230.7%
$1.69 × 18x P/E
Adjust Assumptions
16.0x
1.69$
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
5.4x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (14 analysts)
$10.00
Divergence from AlphaVal
170%
Summary
Applying a 16x P/E to adjusted EPS of $1.69, the base-case value is $27.04 per share.
Warnings
Wall Street's average price target is $10.00 (from 14 analysts). Our estimate is 170% above 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