SEE
Sealed Air Corporation
$42.15
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 18.6% below fair value
You pay
$42.15
Bear
$41.43
Fair
$51.79
Bull
$62.14
Bear
$41.43
-1.7%
$3.67 × 12x P/E
Fair
$51.79
+22.9%
$3.67 × 15x P/E
Bull
$62.14
+47.4%
$3.67 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
11.5x
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 $42.00 from 27 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $51.79 per share.
Warnings
Wall Street's average price target is $42.00 (from 27 analysts). Our estimate is 31% 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