REZI
Resideo Technologies, Inc.
$37.03
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 36.7% above fair value
You pay
$37.03
Bear
$21.67
Fair
$27.09
Bull
$32.52
Bear
$21.67
-41.5%
$1.42 × 12x P/E
Fair
$27.09
-26.9%
$1.42 × 15x P/E
Bull
$32.52
-12.2%
$1.42 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
26.1x
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 $50.00 from 7 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $27.09 per share.
Warnings
Wall Street's average price target is $50.00 (from 7 analysts). Our estimate is 57% 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