SIG
Signet Jewelers Limited
$107.43
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 1.2% above fair value
You pay
$107.43
Bear
$84.96
Fair
$106.20
Bull
$127.44
Bear
$84.96
-20.9%
$7.08 × 12x P/E
Fair
$106.20
-1.1%
$7.08 × 15x P/E
Bull
$127.44
+18.6%
$7.08 × 18x P/E
Adjust Assumptions
15.0x
7.08$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
15.2x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (31 analysts)
$121.83
Divergence from AlphaVal
13%
Summary
Applying a 15x P/E to adjusted EPS of $7.08, the base-case value is $106.20 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