SGE
Strong Global Entertainment, Inc.
$1.55
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 79.2% below fair value
You pay
$1.55
Bear
$5.97
Fair
$7.46
Bull
$8.95
Bear
$5.97
+285.0%
$0.42 × 14x P/E
Fair
$7.46
+381.2%
$0.42 × 18x P/E
Bull
$8.95
+477.5%
$0.42 × 21x P/E
Adjust Assumptions
17.8x
0.42$
Key Value Driver
Normalized P/E multiple (18x base case)
Implied Market Multiple
3.7x
Summary
Applying a 18x P/E to adjusted EPS of $0.42, the base-case value is $7.46 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