SIG
Signet Jewelers Limited
$84.54
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 27.3% below fair value
You pay
$84.54
Bear
$93.03
Fair
$116.30
Bull
$139.55
Bear
$93.03
+10.0%
$7.62 × 12x P/E
Fair
$116.30
+37.6%
$7.62 × 15x P/E
Bull
$139.55
+65.1%
$7.62 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
11.1x
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 $121.00 from 30 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $116.30 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