TILE
Interface, Inc.
$28.81
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 13.3% below fair value
You pay
$28.81
Bear
$29.08
Fair
$33.24
Bull
$37.40
Bear
$29.08
+1.0%
$2.03 × 14x P/E
Fair
$33.24
+15.4%
$2.03 × 16x P/E
Bull
$37.40
+29.8%
$2.03 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
14.2x
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 $36.00 from 12 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $33.24 per share.
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