SXT
Sensient Technologies Corporation
$114.44
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 71.5% above fair value
You pay
$114.44
Bear
$53.39
Fair
$66.74
Bull
$80.08
Bear
$53.39
-53.3%
$3.18 × 12x P/E
Fair
$66.74
-41.7%
$3.18 × 15x P/E
Bull
$80.08
-30.0%
$3.18 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
36.0x
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 $143.00 from 12 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $66.74 per share.
Warnings
Dividend-based valuation: $23.66 (below our primary estimate by 50%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $143.00 (from 12 analysts). Our estimate is 67% below 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