TALK
Talkspace, Inc.
$5.20
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 187.3% above fair value
You pay
$5.20
Bear
$1.45
Fair
$1.81
Bull
$2.17
Bear
$1.45
-72.2%
$0.04 × 18x P/E
Fair
$1.81
-65.2%
$0.04 × 22x P/E
Bull
$2.17
-58.2%
$0.04 × 27x P/E
Key Value Driver
Normalized P/E multiple (22x base case)
Implied Market Multiple
123.4x
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 $5.25 from 10 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $1.81 per share.
Warnings
Wall Street's average price target is $5.25 (from 10 analysts). Our estimate is 82% 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