SVT
Servotronics, Inc.
$46.94
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 2421.7% above fair value
You pay
$46.94
Bear
$1.63
Fair
$1.86
Bull
$2.09
Bear
$1.63
-96.5%
$0.12 × 14x P/E
Fair
$1.86
-96.0%
$0.12 × 16x P/E
Bull
$2.09
-95.5%
$0.12 × 18x P/E
Adjust Assumptions
16.0x
0.12$
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
403.5x
Summary
Applying a 16x P/E to adjusted EPS of $0.12, the base-case value is $1.86 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