PLUS
ePlus inc.
$94.05
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 18.2% below fair value
You pay
$94.05
Bear
$96.27
Fair
$114.99
Bull
$133.70
Bear
$96.27
+2.4%
$5.03 × 19x P/E
Fair
$114.99
+22.3%
$5.03 × 23x P/E
Bull
$133.70
+42.2%
$5.03 × 27x P/E
Adjust Assumptions
22.9x
5.03$
Key Value Driver
Normalized P/E multiple (23x base case)
Implied Market Multiple
18.7x
Summary
Applying a 23x P/E to adjusted EPS of $5.03, the base-case value is $114.99 per share.
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