RICK
RCI Hospitality Holdings, Inc.
$26.07
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 61.3% below fair value
You pay
$26.07
Bear
$56.34
Fair
$67.30
Bull
$78.25
Bear
$56.34
+116.1%
$3.13 × 18x P/E
Fair
$67.30
+158.1%
$3.13 × 22x P/E
Bull
$78.25
+200.2%
$3.13 × 25x P/E
Adjust Assumptions
21.5x
3.13$
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
8.3x
Summary
Applying a 22x P/E to adjusted EPS of $3.13, the base-case value is $67.30 per share.
Warnings
The company's reported profits differ from official accounting profits by 154%. Check what costs are being left out of the adjusted number.
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