MBC
MasterBrand, Inc.
$6.67
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 65.2% below fair value
You pay
$6.67
Bear
$16.80
Fair
$19.20
Bull
$21.60
Bear
$16.80
+151.7%
$1.20 × 14x P/E
Fair
$19.20
+187.6%
$1.20 × 16x P/E
Bull
$21.60
+223.6%
$1.20 × 18x P/E
Adjust Assumptions
16.0x
1.2$
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
5.6x
Summary
Applying a 16x P/E to adjusted EPS of $1.20, the base-case value is $19.20 per share.
Warnings
The company's reported profits differ from official accounting profits by 471%. Check what costs are being left out of the adjusted number.
This stock is 52% below its 52-week high, with weak or declining earnings. That combination often signals real trouble, even though the valuation below is based on other fundamentals.
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