RAL
Ralliant Corp
$67.53
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 31.6% above fair value
You pay
$67.53
Bear
$41.04
Fair
$51.31
Bull
$61.57
Bear
$41.04
-39.2%
$3.29 × 12x P/E
Fair
$51.31
-24.0%
$3.29 × 15x P/E
Bull
$61.57
-8.8%
$3.29 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
20.5x
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 $59.17 from 7 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $51.31 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