SCSC
ScanSource, Inc.
$44.09
Stable Earnings Power
50%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 7.0% below fair value
You pay
$44.09
Bear
$37.94
Fair
$47.42
Bull
$56.90
Bear
$37.94
-14.0%
$3.23 × 12x P/E
Fair
$47.42
+7.5%
$3.23 × 15x P/E
Bull
$56.90
+29.0%
$3.23 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
13.6x
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 $43.00 from 5 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $47.42 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