VC Visteon Corporation
$113.47
Stable Earnings Power 80%
P/Adj-EPS × Normalized Multiple
Moderate · Conviction

Undervalued

Trading 36.3% below fair value

You pay $113.47
Bear $150.82
Fair $178.25
Bull $205.67
Bear $150.82 +32.9% $7.54 × 22x P/E
Fair $178.25 +57.1% $7.54 × 26x P/E
Bull $205.67 +81.3% $7.54 × 30x P/E

Key Value Driver

Normalized P/E multiple (26x base case)

Implied Market Multiple 15.1x

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 $121.00 from 23 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $178.25 per share.

Warnings

Wall Street's average price target is $121.00 (from 23 analysts). Our estimate is 63% above 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