RICK
RCI Hospitality Holdings, Inc.
$26.75
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 55.7% below fair value
You pay
$26.75
Bear
$50.55
Fair
$60.38
Bull
$70.21
Bear
$50.55
+89.0%
$2.81 × 18x P/E
Fair
$60.38
+125.7%
$2.81 × 22x P/E
Bull
$70.21
+162.4%
$2.81 × 25x P/E
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
9.5x
Summary
Applying a 22x P/E to adjusted EPS of $2.81, the base-case value is $60.38 per share.
Warnings
The company's reported profits differ from official accounting profits by 128%. 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