RKT
Rocket Companies, Inc.
$11.48
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 2024.7% above fair value
You pay
$11.48
Bear
$0.43
Fair
$0.54
Bull
$0.65
Bear
$0.43
-96.2%
$0.04 × 12x P/E
Fair
$0.54
-95.3%
$0.04 × 15x P/E
Bull
$0.65
-94.4%
$0.04 × 18x P/E
Adjust Assumptions
15.0x
0.04$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
318.7x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (27 analysts)
$17.63
Divergence from AlphaVal
97%
Summary
Applying a 15x P/E to adjusted EPS of $0.04, the base-case value is $0.54 per share.
Warnings
Wall Street's average price target is $17.63 (from 27 analysts). Our estimate is 97% below the consensus -- consider that gap carefully.
This stock is 53% below its 52-week high, with weak or declining earnings. That combination often signals real trouble, even though the valuation below is based on other fundamentals.
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