TILE
Interface, Inc.
$35.83
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 14.3% above fair value
You pay
$35.83
Bear
$27.44
Fair
$31.36
Bull
$35.28
Bear
$27.44
-23.4%
$1.96 × 14x P/E
Fair
$31.36
-12.5%
$1.96 × 16x P/E
Bull
$35.28
-1.5%
$1.96 × 18x P/E
Adjust Assumptions
16.0x
1.96$
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
18.3x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (12 analysts)
$45.00
Divergence from AlphaVal
30%
Summary
Applying a 16x P/E to adjusted EPS of $1.96, the base-case value is $31.36 per share.
Warnings
Wall Street's average price target is $45.00 (from 12 analysts). Our estimate is 30% 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