REYN
Reynolds Consumer Products Inc.
$21.79
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 16.4% below fair value
You pay
$21.79
Bear
$20.86
Fair
$26.07
Bull
$31.29
Bear
$20.86
-4.3%
$1.77 × 12x P/E
Fair
$26.07
+19.7%
$1.77 × 15x P/E
Bull
$31.29
+43.6%
$1.77 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
12.3x
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 $26.07 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