SOLS
Solstice Advanced Materials Inc.
$60.38
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 22.5% above fair value
You pay
$60.38
Bear
$39.42
Fair
$49.28
Bull
$59.13
Bear
$39.42
-34.7%
$3.29 × 12x P/E
Fair
$49.28
-18.4%
$3.29 × 15x P/E
Bull
$59.13
-2.1%
$3.29 × 18x P/E
Adjust Assumptions
15.0x
3.29$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
18.4x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (5 analysts)
$80.22
Divergence from AlphaVal
39%
Summary
Applying a 15x P/E to adjusted EPS of $3.29, the base-case value is $49.28 per share.
Warnings
The company's reported profits differ from official accounting profits by 120%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $80.22 (from 5 analysts). Our estimate is 39% 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