SLGN
Silgan Holdings Inc.
$47.18
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 6.5% below fair value
You pay
$47.18
Bear
$40.37
Fair
$50.46
Bull
$60.56
Bear
$40.37
-14.4%
$3.30 × 12x P/E
Fair
$50.46
+7.0%
$3.30 × 15x P/E
Bull
$60.56
+28.3%
$3.30 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
14.3x
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 $53.50 from 21 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $50.46 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