PBH
Prestige Consumer Healthcare Inc.
$48.00
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 52.4% below fair value
You pay
$48.00
Bear
$80.68
Fair
$100.84
Bull
$121.02
Bear
$80.68
+68.1%
$7.50 × 12x P/E
Fair
$100.84
+110.1%
$7.50 × 15x P/E
Bull
$121.02
+152.1%
$7.50 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
6.4x
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 $66.00 from 17 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $100.84 per share.
Warnings
The company's reported profits differ from official accounting profits by 92%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $66.00 (from 17 analysts). Our estimate is 70% 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