REYN
Reynolds Consumer Products Inc.
$26.25
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 9.2% below fair value
You pay
$26.25
Bear
$23.81
Fair
$28.91
Bull
$34.01
Bear
$23.81
-9.3%
$1.77 × 14x P/E
Fair
$28.91
+10.1%
$1.77 × 17x P/E
Bull
$34.01
+29.5%
$1.77 × 20x P/E
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
14.8x
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 $24.00 from 12 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $28.91 per share.
Warnings
Wall Street's average price target is $24.00 (from 12 analysts). Our estimate is 26% 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