LXFR
Luxfer Holdings PLC
$17.32
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 67.4% above fair value
You pay
$17.32
Bear
$8.28
Fair
$10.35
Bull
$12.42
Bear
$8.28
-52.2%
$0.69 × 12x P/E
Fair
$10.35
-40.3%
$0.69 × 15x P/E
Bull
$12.42
-28.3%
$0.69 × 18x P/E
Adjust Assumptions
15.0x
0.69$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
25.1x
Summary
Applying a 15x P/E to adjusted EPS of $0.69, the base-case value is $10.35 per share. DDM cross-check: $7.50.
Warnings
The company's reported profits differ from official accounting profits by 146%. Check what costs are being left out of the adjusted number.
The company pays out 186% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
Dividend-based valuation: $7.50 (below our primary estimate by 28%). Large gaps may signal the dividend doesn't reflect full earning power.
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