MLR
Miller Industries, Inc.
$46.56
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 2.2% below fair value
You pay
$46.56
Bear
$41.66
Fair
$47.62
Bull
$53.57
Bear
$41.66
-10.5%
$2.98 × 14x P/E
Fair
$47.62
+2.3%
$2.98 × 16x P/E
Bull
$53.57
+15.1%
$2.98 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
15.6x
Summary
Applying a 16x P/E to adjusted EPS of $2.98, the base-case value is $47.62 per share. DDM cross-check: $15.69.
Warnings
The company's reported profits differ from official accounting profits by 50%. Check what costs are being left out of the adjusted number.
Dividend-based valuation: $15.69 (below our primary estimate by 67%). 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