RXN
Rexnord Corporation
$64.95
Stable Earnings Power
85%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 221.2% above fair value
You pay
$64.95
Bear
$17.70
Fair
$20.22
Bull
$22.75
Bear
$17.70
-72.8%
$1.12 × 16x P/E
Fair
$20.22
-68.9%
$1.12 × 18x P/E
Bull
$22.75
-65.0%
$1.12 × 20x P/E
Adjust Assumptions
18.1x
1.12$
Key Value Driver
Normalized P/E multiple (18x base case)
Implied Market Multiple
58.0x
Summary
Applying a 18x P/E to adjusted EPS of $1.12, the base-case value is $20.22 per share.
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