SCVL
Shoe Carnival, Inc.
$14.74
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 58.7% below fair value
You pay
$14.74
Bear
$28.52
Fair
$35.65
Bull
$42.78
Bear
$28.52
+93.5%
$2.68 × 12x P/E
Fair
$35.65
+141.9%
$2.68 × 15x P/E
Bull
$42.78
+190.2%
$2.68 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
5.5x
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 $22.00 from 15 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $35.65 per share.
Warnings
The company's reported profits differ from official accounting profits by 41%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $22.00 (from 15 analysts). Our estimate is 83% above 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