TG
Tredegar Corporation
$7.80
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 45.8% below fair value
You pay
$7.80
Bear
$11.52
Fair
$14.40
Bull
$17.28
Bear
$11.52
+47.7%
$0.96 × 12x P/E
Fair
$14.40
+84.6%
$0.96 × 15x P/E
Bull
$17.28
+121.5%
$0.96 × 18x P/E
Adjust Assumptions
15.0x
0.96$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
8.1x
Summary
Applying a 15x P/E to adjusted EPS of $0.96, the base-case value is $14.40 per share. DDM cross-check: $11.68.
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