RHI
Robert Half Inc.
$44.97
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 22.7% below fair value
You pay
$44.97
Bear
$46.56
Fair
$58.20
Bull
$69.84
Bear
$46.56
+3.5%
$3.88 × 12x P/E
Fair
$58.20
+29.4%
$3.88 × 15x P/E
Bull
$69.84
+55.3%
$3.88 × 18x P/E
Adjust Assumptions
15.0x
3.88$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
11.6x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (25 analysts)
$38.00
Divergence from AlphaVal
53%
Summary
Applying a 15x P/E to adjusted EPS of $3.88, the base-case value is $58.20 per share. DDM cross-check: $301.64.
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: $301.64 (above our primary estimate by 418%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $38.00 (from 25 analysts). Our estimate is 53% 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