NRC
National Research Corporation
$18.54
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 18.3% above fair value
You pay
$18.54
Bear
$12.54
Fair
$15.68
Bull
$18.81
Bear
$12.54
-32.4%
$1.25 × 10x P/E
Fair
$15.68
-15.5%
$1.25 × 12x P/E
Bull
$18.81
+1.5%
$1.25 × 15x P/E
Key Value Driver
Normalized P/E multiple (12x base case)
Implied Market Multiple
14.8x
Summary
Applying a 12x P/E to adjusted EPS of $1.25, the base-case value is $15.68 per share.
Warnings
The company's reported profits differ from official accounting profits by 141%. Check what costs are being left out of the adjusted number.
The company pays out 115% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
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