STNG
Scorpio Tankers Inc.
$88.12
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 41.4% below fair value
You pay
$88.12
Bear
$120.36
Fair
$150.45
Bull
$180.54
Bear
$120.36
+36.6%
$10.03 × 12x P/E
Fair
$150.45
+70.7%
$10.03 × 15x P/E
Bull
$180.54
+104.9%
$10.03 × 18x P/E
Adjust Assumptions
15.0x
10.03$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
8.8x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (31 analysts)
$96.67
Divergence from AlphaVal
56%
Summary
Applying a 15x P/E to adjusted EPS of $10.03, the base-case value is $150.45 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 $96.67 (from 31 analysts). Our estimate is 56% 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