STRC
Strategy Inc
$89.20
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 391.7% above fair value
You pay
$89.20
Bear
$15.19
Fair
$18.14
Bull
$21.09
Bear
$15.19
-83.0%
$0.56 × 27x P/E
Fair
$18.14
-79.7%
$0.56 × 32x P/E
Bull
$21.09
-76.4%
$0.56 × 38x P/E
Key Value Driver
Normalized P/E multiple (32x base case)
Implied Market Multiple
158.6x
Summary
Applying a 32x P/E to adjusted EPS of $0.56, the base-case value is $18.14 per share.
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