RHI
Robert Half Inc.
$32.40
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 39.8% below fair value
You pay
$32.40
Bear
$43.05
Fair
$53.82
Bull
$64.58
Bear
$43.05
+32.9%
$3.88 × 12x P/E
Fair
$53.82
+66.1%
$3.88 × 15x P/E
Bull
$64.58
+99.3%
$3.88 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
8.4x
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 $40.67 from 25 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $53.82 per share.
Warnings
The company's reported profits differ from official accounting profits by 192%. Check what costs are being left out of the adjusted number.
The company pays out 177% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
Dividend-based valuation: $1375.76 (above our primary estimate by 2264%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $40.67 (from 25 analysts). Our estimate is 43% 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