TRC
Tejon Ranch Co.
$16.35
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 562.4% above fair value
You pay
$16.35
Bear
$1.97
Fair
$2.47
Bull
$2.96
Bear
$1.97
-87.9%
$0.16 × 12x P/E
Fair
$2.47
-84.9%
$0.16 × 15x P/E
Bull
$2.96
-81.9%
$0.16 × 18x P/E
Adjust Assumptions
15.0x
0.16$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
99.4x
Summary
Applying a 15x P/E to adjusted EPS of $0.16, the base-case value is $2.47 per share.
Warnings
The company's reported profits differ from official accounting profits by 5777%. Check what costs are being left out of the adjusted number.
The company pays out 3571% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
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