USFD US Foods Holding Corp.
$95.97
Stable Earnings Power 80%
P/Adj-EPS × Normalized Multiple
Strong · Conviction

Overvalued

Trading 82.6% above fair value

You pay $95.97
Bear $43.28
Fair $52.56
Bull $61.83
Bear $43.28 -54.9% $2.94 × 15x P/E
Fair $52.56 -45.2% $2.94 × 18x P/E
Bull $61.83 -35.6% $2.94 × 21x P/E

Adjust Assumptions

17.9x
2.94$

Key Value Driver

Normalized P/E multiple (18x base case)

Implied Market Multiple 32.6x

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above.

Average Target (26 analysts) $117.00
Divergence from AlphaVal 55%

Summary

Applying a 18x P/E to adjusted EPS of $2.94, the base-case value is $52.56 per share.

Warnings

Wall Street's average price target is $117.00 (from 26 analysts). Our estimate is 55% 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