SXT
Sensient Technologies Corporation
$135.22
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 185.3% above fair value
You pay
$135.22
Bear
$37.92
Fair
$47.40
Bull
$56.88
Bear
$37.92
-72.0%
$3.16 × 12x P/E
Fair
$47.40
-64.9%
$3.16 × 15x P/E
Bull
$56.88
-57.9%
$3.16 × 18x P/E
Adjust Assumptions
15.0x
3.16$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
42.8x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (12 analysts)
$140.67
Divergence from AlphaVal
66%
Summary
Applying a 15x P/E to adjusted EPS of $3.16, the base-case value is $47.40 per share.
Warnings
Wall Street's average price target is $140.67 (from 12 analysts). Our estimate is 66% 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