RVLV
Revolve Group, Inc.
$21.63
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 10.6% above fair value
You pay
$21.63
Bear
$17.11
Fair
$19.55
Bull
$21.99
Bear
$17.11
-20.9%
$0.86 × 20x P/E
Fair
$19.55
-9.6%
$0.86 × 23x P/E
Bull
$21.99
+1.7%
$0.86 × 26x P/E
Adjust Assumptions
22.7x
0.86$
Key Value Driver
Normalized P/E multiple (23x base case)
Implied Market Multiple
25.2x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (30 analysts)
$29.57
Divergence from AlphaVal
34%
Summary
Applying a 23x P/E to adjusted EPS of $0.86, the base-case value is $19.55 per share.
Warnings
Wall Street's average price target is $29.57 (from 30 analysts). Our estimate is 34% 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