LOVE
The Lovesac Company
$17.16
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 44.6% below fair value
You pay
$17.16
Bear
$27.12
Fair
$30.99
Bull
$34.86
Bear
$27.12
+58.0%
$1.45 × 20x P/E
Fair
$30.99
+80.6%
$1.45 × 23x P/E
Bull
$34.86
+103.2%
$1.45 × 26x P/E
Key Value Driver
Normalized P/E multiple (23x base case)
Implied Market Multiple
11.8x
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 $21.33 from 11 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $30.99 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 $21.33 (from 11 analysts). Our estimate is 57% 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