OSPN OneSpan Inc.
$16.54
Stable Earnings Power 40%
P/Adj-EPS × Normalized Multiple
Strong · Conviction

Undervalued

Trading 59.5% below fair value

You pay $16.54
Bear $34.20
Fair $40.85
Bull $47.50
Bear $34.20 +106.8% $1.90 × 18x P/E
Fair $40.85 +147.0% $1.90 × 22x P/E
Bull $47.50 +187.2% $1.90 × 25x P/E

Adjust Assumptions

21.5x
1.9$

Key Value Driver

Normalized P/E multiple (22x base case)

Implied Market Multiple 8.7x

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above.

Average Target (15 analysts) $16.00
Divergence from AlphaVal 155%

Summary

Applying a 22x P/E to adjusted EPS of $1.90, the base-case value is $40.85 per share.

Warnings

Wall Street's average price target is $16.00 (from 15 analysts). Our estimate is 155% above the consensus -- consider that gap carefully.

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