LEG
Leggett & Platt, Incorporated
$9.99
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 61.4% below fair value
You pay
$9.99
Bear
$22.63
Fair
$25.86
Bull
$29.09
Bear
$22.63
+126.5%
$1.83 × 14x P/E
Fair
$25.86
+158.8%
$1.83 × 16x P/E
Bull
$29.09
+191.2%
$1.83 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
5.5x
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 $12.00 from 14 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $25.86 per share.
Warnings
Wall Street's average price target is $12.00 (from 14 analysts). Our estimate is 144% 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