TDS
Telephone and Data Systems, Inc.
$37.83
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 2703.5% above fair value
You pay
$37.83
Bear
$1.08
Fair
$1.35
Bull
$1.62
Bear
$1.08
-97.1%
$0.09 × 12x P/E
Fair
$1.35
-96.4%
$0.09 × 15x P/E
Bull
$1.62
-95.7%
$0.09 × 18x P/E
Adjust Assumptions
15.0x
0.09$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
420.5x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (7 analysts)
$27.67
Divergence from AlphaVal
95%
Summary
Applying a 15x P/E to adjusted EPS of $0.09, the base-case value is $1.35 per share.
Warnings
Wall Street's average price target is $27.67 (from 7 analysts). Our estimate is 95% 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