SEE
Sealed Air Corporation
$42.15
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 21.6% below fair value
You pay
$42.15
Bear
$43.01
Fair
$53.77
Bull
$64.52
Bear
$43.01
+2.0%
$3.67 × 12x P/E
Fair
$53.77
+27.6%
$3.67 × 15x P/E
Bull
$64.52
+53.1%
$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 $49.92 from 27 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $53.77 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