REYN
Reynolds Consumer Products Inc.
$22.01
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 9.5% below fair value
You pay
$22.01
Bear
$20.02
Fair
$24.31
Bull
$28.60
Bear
$20.02
-9.0%
$1.43 × 14x P/E
Fair
$24.31
+10.4%
$1.43 × 17x P/E
Bull
$28.60
+29.9%
$1.43 × 20x P/E
Adjust Assumptions
17.0x
1.43$
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
15.4x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (12 analysts)
$25.00
Divergence from AlphaVal
3%
Summary
Applying a 17x P/E to adjusted EPS of $1.43, the base-case value is $24.31 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