SVTMF
SM Investments Corporation
$8.59
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 57.2% below fair value
You pay
$8.59
Bear
$17.55
Fair
$20.06
Bull
$22.57
Bear
$17.55
+104.4%
$1.17 × 15x P/E
Fair
$20.06
+133.6%
$1.17 × 17x P/E
Bull
$22.57
+162.7%
$1.17 × 19x P/E
Adjust Assumptions
17.2x
1.17$
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
7.4x
Summary
Applying a 17x P/E to adjusted EPS of $1.17, the base-case value is $20.06 per share. DDM cross-check: $85.55.
Warnings
Dividend-based valuation: $85.55 (above our primary estimate by 326%). Large gaps may signal the dividend doesn't reflect full earning power.
Financial statements were converted from PHP into USD using USDPHP at 0.0157 USD per PHP.
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