SLGN
Silgan Holdings Inc.
$37.91
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 23.7% below fair value
You pay
$37.91
Bear
$39.77
Fair
$49.71
Bull
$59.66
Bear
$39.77
+4.9%
$3.30 × 12x P/E
Fair
$49.71
+31.1%
$3.30 × 15x P/E
Bull
$59.66
+57.4%
$3.30 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
11.5x
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 $50.50 from 21 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $49.71 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