STNG
Scorpio Tankers Inc.
$79.32
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 39.5% below fair value
You pay
$79.32
Bear
$104.83
Fair
$131.04
Bull
$157.25
Bear
$104.83
+32.2%
$10.03 × 12x P/E
Fair
$131.04
+65.2%
$10.03 × 15x P/E
Bull
$157.25
+98.2%
$10.03 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
7.9x
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 $85.75 from 31 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $131.04 per share.
Warnings
The company's reported profits differ from official accounting profits by 43%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $85.75 (from 31 analysts). Our estimate is 75% 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