RVLV
Revolve Group, Inc.
$24.88
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 11.8% above fair value
You pay
$24.88
Bear
$19.48
Fair
$22.26
Bull
$25.04
Bear
$19.48
-21.7%
$0.86 × 20x P/E
Fair
$22.26
-10.5%
$0.86 × 23x P/E
Bull
$25.04
+0.6%
$0.86 × 26x P/E
Key Value Driver
Normalized P/E multiple (23x base case)
Implied Market Multiple
28.8x
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 $28.43 from 30 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $22.26 per share.
Warnings
Wall Street's average price target is $28.43 (from 30 analysts). Our estimate is 31% 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