SCS
Steelcase Inc.
$16.14
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 5.5% above fair value
You pay
$16.14
Bear
$12.24
Fair
$15.30
Bull
$18.36
Bear
$12.24
-24.2%
$1.02 × 12x P/E
Fair
$15.30
-5.2%
$1.02 × 15x P/E
Bull
$18.36
+13.8%
$1.02 × 18x P/E
Adjust Assumptions
15.0x
1.02$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
15.8x
Summary
Applying a 15x P/E to adjusted EPS of $1.02, the base-case value is $15.30 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