SCS
Steelcase Inc.
$16.14
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 0.4% below fair value
You pay
$16.14
Bear
$12.96
Fair
$16.21
Bull
$19.45
Bear
$12.96
-19.7%
$1.08 × 12x P/E
Fair
$16.21
+0.4%
$1.08 × 15x P/E
Bull
$19.45
+20.5%
$1.08 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
14.9x
Summary
Applying a 15x P/E to adjusted EPS of $1.08, the base-case value is $16.21 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