MLKN
MillerKnoll, Inc.
$22.20
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 27.4% below fair value
You pay
$22.20
Bear
$26.77
Fair
$30.60
Bull
$34.42
Bear
$26.77
+20.6%
$1.80 × 15x P/E
Fair
$30.60
+37.8%
$1.80 × 17x P/E
Bull
$34.42
+55.0%
$1.80 × 19x P/E
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
12.4x
Summary
Applying a 17x P/E to adjusted EPS of $1.80, the base-case value is $30.60 per share.
Warnings
The company's reported profits differ from official accounting profits by 36%. Check what costs are being left out of the adjusted number.
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