RVLV
Revolve Group, Inc.
$19.23
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 14.9% below fair value
You pay
$19.23
Bear
$19.77
Fair
$22.59
Bull
$25.42
Bear
$19.77
+2.8%
$0.86 × 20x P/E
Fair
$22.59
+17.5%
$0.86 × 23x P/E
Bull
$25.42
+32.2%
$0.86 × 26x P/E
Key Value Driver
Normalized P/E multiple (23x base case)
Implied Market Multiple
22.3x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $29.56 from 30 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $22.59 per share.
Warnings
Wall Street's average price target is $29.56 (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