NMRK
Newmark Group, Inc.
$14.94
Stable Earnings Power
75%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 15.5% below fair value
You pay
$14.94
Bear
$14.14
Fair
$17.68
Bull
$21.22
Bear
$14.14
-5.3%
$0.97 × 14x P/E
Fair
$17.68
+18.3%
$0.97 × 18x P/E
Bull
$21.22
+42.0%
$0.97 × 21x P/E
Key Value Driver
Normalized P/E multiple (18x base case)
Implied Market Multiple
15.3x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $19.00 from 12 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $17.68 per share.
Warnings
The company's reported profits differ from official accounting profits by 43%. 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