SNA
Snap-on Incorporated
$414.97
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 28.0% above fair value
You pay
$414.97
Bear
$259.44
Fair
$324.31
Bull
$389.17
Bear
$259.44
-37.5%
$19.60 × 12x P/E
Fair
$324.31
-21.8%
$19.60 × 15x P/E
Bull
$389.17
-6.2%
$19.60 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
21.2x
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 $415.33 from 17 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $324.31 per share.
Warnings
Wall Street's average price target is $415.33 (from 17 analysts). Our estimate is 29% below 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