PBH
Prestige Consumer Healthcare Inc.
$48.15
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 12.0% below fair value
You pay
$48.15
Bear
$46.92
Fair
$54.74
Bull
$62.56
Bear
$46.92
-2.6%
$3.91 × 12x P/E
Fair
$54.74
+13.7%
$3.91 × 14x P/E
Bull
$62.56
+29.9%
$3.91 × 16x P/E
Adjust Assumptions
14.0x
3.91$
Key Value Driver
Normalized P/E multiple (14x base case)
Implied Market Multiple
12.3x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (17 analysts)
$81.67
Divergence from AlphaVal
33%
Summary
Applying a 14x P/E to adjusted EPS of $3.91, the base-case value is $54.74 per share.
Warnings
Wall Street's average price target is $81.67 (from 17 analysts). Our estimate is 33% below 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