PSMT
PriceSmart, Inc.
$168.88
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 4.7% below fair value
You pay
$168.88
Bear
$145.90
Fair
$177.17
Bull
$208.43
Bear
$145.90
-13.6%
$4.82 × 30x P/E
Fair
$177.17
+4.9%
$4.82 × 37x P/E
Bull
$208.43
+23.4%
$4.82 × 43x P/E
Adjust Assumptions
36.8x
4.82$
Key Value Driver
Normalized P/E multiple (37x base case)
Implied Market Multiple
35.0x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (8 analysts)
$198.00
Divergence from AlphaVal
11%
Summary
Applying a 37x P/E to adjusted EPS of $4.82, the base-case value is $177.17 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