SIG
Signet Jewelers Limited
$81.61
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 27.9% below fair value
You pay
$81.61
Bear
$90.50
Fair
$113.13
Bull
$135.75
Bear
$90.50
+10.9%
$7.61 × 12x P/E
Fair
$113.13
+38.6%
$7.61 × 15x P/E
Bull
$135.75
+66.3%
$7.61 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
10.7x
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 $110.60 from 30 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $113.13 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