RMAX
RE/MAX Holdings, Inc.
$12.36
Stable Earnings Power
75%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 106.0% above fair value
You pay
$12.36
Bear
$4.80
Fair
$6.00
Bull
$7.20
Bear
$4.80
-61.2%
$0.40 × 12x P/E
Fair
$6.00
-51.5%
$0.40 × 15x P/E
Bull
$7.20
-41.7%
$0.40 × 18x P/E
Adjust Assumptions
15.0x
0.4$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
30.9x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (14 analysts)
$16.67
Divergence from AlphaVal
64%
Summary
Applying a 15x P/E to adjusted EPS of $0.40, the base-case value is $6.00 per share. DDM cross-check: $15.86.
Warnings
The company pays out 230% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
Dividend-based valuation: $15.86 (above our primary estimate by 164%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $16.67 (from 14 analysts). Our estimate is 64% below 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