SMPL
The Simply Good Foods Company
$12.77
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 67.5% below fair value
You pay
$12.77
Bear
$32.38
Fair
$39.32
Bull
$46.26
Bear
$32.38
+153.5%
$2.11 × 18x P/E
Fair
$39.32
+207.9%
$2.11 × 22x P/E
Bull
$46.26
+262.2%
$2.11 × 26x P/E
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
6.1x
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 $15.63 from 24 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $39.32 per share.
Warnings
The company's reported profits differ from official accounting profits by 107%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $15.63 (from 24 analysts). Our estimate is 202% above the consensus -- consider that gap carefully.
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