TALK Talkspace, Inc.
$5.25
Stable Earnings Power 80%
P/Adj-EPS × Normalized Multiple
Strong · Conviction

Overvalued

Trading 483.3% above fair value

You pay $5.25
Bear $0.72
Fair $0.90
Bull $1.08
Bear $0.72 -86.3% $0.04 × 18x P/E
Fair $0.90 -82.9% $0.04 × 22x P/E
Bull $1.08 -79.4% $0.04 × 27x P/E

Adjust Assumptions

22.5x
0.04$

Key Value Driver

Normalized P/E multiple (22x base case)

Implied Market Multiple 131.2x

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above.

Average Target (10 analysts) $5.25
Divergence from AlphaVal 83%

Summary

Applying a 22x P/E to adjusted EPS of $0.04, the base-case value is $0.90 per share.

Warnings

Wall Street's average price target is $5.25 (from 10 analysts). Our estimate is 83% 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