RAL
Ralliant Corp
$68.73
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 53.5% above fair value
You pay
$68.73
Bear
$35.82
Fair
$44.77
Bull
$53.72
Bear
$35.82
-47.9%
$2.98 × 12x P/E
Fair
$44.77
-34.9%
$2.98 × 15x P/E
Bull
$53.72
-21.8%
$2.98 × 18x P/E
Adjust Assumptions
15.0x
2.98$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
23.0x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (9 analysts)
$74.83
Divergence from AlphaVal
40%
Summary
Applying a 15x P/E to adjusted EPS of $2.98, the base-case value is $44.77 per share.
Warnings
Wall Street's average price target is $74.83 (from 9 analysts). Our estimate is 40% below 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