PVH
PVH Corp.
$75.79
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 52.2% below fair value
You pay
$75.79
Bear
$126.72
Fair
$158.40
Bull
$190.08
Bear
$126.72
+67.2%
$10.56 × 12x P/E
Fair
$158.40
+109.0%
$10.56 × 15x P/E
Bull
$190.08
+150.8%
$10.56 × 18x P/E
Adjust Assumptions
15.0x
10.56$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
7.2x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (38 analysts)
$93.40
Divergence from AlphaVal
70%
Summary
Applying a 15x P/E to adjusted EPS of $10.56, the base-case value is $158.40 per share.
Warnings
The company's reported profits differ from official accounting profits by 1892%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $93.40 (from 38 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