MNRO
Monro Inc.
$12.57
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 31.1% below fair value
You pay
$12.57
Bear
$15.96
Fair
$18.24
Bull
$20.52
Bear
$15.96
+27.0%
$1.14 × 14x P/E
Fair
$18.24
+45.1%
$1.14 × 16x P/E
Bull
$20.52
+63.2%
$1.14 × 18x P/E
Adjust Assumptions
16.0x
1.14$
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
11.0x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (24 analysts)
$16.50
Divergence from AlphaVal
11%
Summary
Applying a 16x P/E to adjusted EPS of $1.14, the base-case value is $18.24 per share. DDM cross-check: $16.16.
Warnings
The company's reported profits differ from official accounting profits by 4045%. Check what costs are being left out of the adjusted number.
The company pays out 4073% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
This stock is 47% 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