PVH
PVH Corp.
$78.39
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 43.4% below fair value
You pay
$78.39
Bear
$110.78
Fair
$138.48
Bull
$166.18
Bear
$110.78
+41.3%
$10.56 × 12x P/E
Fair
$138.48
+76.7%
$10.56 × 15x P/E
Bull
$166.18
+112.0%
$10.56 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
7.4x
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 $92.00 from 38 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $138.48 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 $92.00 (from 38 analysts). Our estimate is 72% 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