SR Spire Inc.
$80.20
Stable Earnings Power 85%
P/Adj-EPS × Normalized Multiple
Mild · Conviction

Overvalued

Trading 14.7% above fair value

You pay $80.20
Bear $61.18
Fair $69.92
Bull $78.66
Bear $61.18 -23.7% $4.37 × 14x P/E
Fair $69.92 -12.8% $4.37 × 16x P/E
Bull $78.66 -1.9% $4.37 × 18x P/E

Adjust Assumptions

16.0x
4.37$

Key Value Driver

Normalized P/E multiple (16x base case)

Implied Market Multiple 18.4x

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above.

Average Target (15 analysts) $96.20
Divergence from AlphaVal 27%

Summary

Applying a 16x P/E to adjusted EPS of $4.37, the base-case value is $69.92 per share. DDM cross-check: $81.34.

Warnings

Wall Street's average price target is $96.20 (from 15 analysts). Our estimate is 27% 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