MLKN
MillerKnoll, Inc.
$20.88
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 7.1% below fair value
You pay
$20.88
Bear
$19.66
Fair
$22.47
Bull
$25.28
Bear
$19.66
-5.8%
$1.32 × 15x P/E
Fair
$22.47
+7.6%
$1.32 × 17x P/E
Bull
$25.28
+21.1%
$1.32 × 19x P/E
Adjust Assumptions
17.0x
1.32$
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
15.8x
Summary
Applying a 17x P/E to adjusted EPS of $1.32, the base-case value is $22.47 per share.
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