LOVE
The Lovesac Company
$14.66
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 56.1% below fair value
You pay
$14.66
Bear
$29.23
Fair
$33.40
Bull
$37.58
Bear
$29.23
+99.4%
$1.45 × 20x P/E
Fair
$33.40
+127.9%
$1.45 × 23x P/E
Bull
$37.58
+156.3%
$1.45 × 26x P/E
Adjust Assumptions
23.0x
1.45$
Key Value Driver
Normalized P/E multiple (23x base case)
Implied Market Multiple
10.1x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (11 analysts)
$20.00
Divergence from AlphaVal
67%
Summary
Applying a 23x P/E to adjusted EPS of $1.45, the base-case value is $33.40 per share.
Warnings
The company's reported profits differ from official accounting profits by 418%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $20.00 (from 11 analysts). Our estimate is 67% 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