TNC
Tennant Company
$83.87
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 18.8% above fair value
You pay
$83.87
Bear
$56.48
Fair
$70.60
Bull
$84.72
Bear
$56.48
-32.7%
$3.55 × 12x P/E
Fair
$70.60
-15.8%
$3.55 × 15x P/E
Bull
$84.72
+1.0%
$3.55 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
23.6x
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 $140.00 from 8 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $70.60 per share.
Warnings
The company's reported profits differ from official accounting profits by 50%. Check what costs are being left out of the adjusted number.
Dividend-based valuation: $37.28 (below our primary estimate by 30%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $140.00 (from 8 analysts). Our estimate is 62% 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