PLUS
ePlus inc.
$89.63
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 24.6% below fair value
You pay
$89.63
Bear
$99.48
Fair
$118.82
Bull
$138.17
Bear
$99.48
+11.0%
$5.20 × 19x P/E
Fair
$118.82
+32.6%
$5.20 × 23x P/E
Bull
$138.17
+54.2%
$5.20 × 27x P/E
Key Value Driver
Normalized P/E multiple (23x base case)
Implied Market Multiple
17.2x
Summary
Applying a 23x P/E to adjusted EPS of $5.20, the base-case value is $118.82 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