VC
Visteon Corporation
$87.25
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 54.2% below fair value
You pay
$87.25
Bear
$161.27
Fair
$190.60
Bull
$219.92
Bear
$161.27
+84.8%
$7.28 × 22x P/E
Fair
$190.60
+118.4%
$7.28 × 26x P/E
Bull
$219.92
+152.1%
$7.28 × 30x P/E
Adjust Assumptions
26.2x
7.28$
Key Value Driver
Normalized P/E multiple (26x base case)
Implied Market Multiple
12.0x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (23 analysts)
$122.44
Divergence from AlphaVal
56%
Summary
Applying a 26x P/E to adjusted EPS of $7.28, the base-case value is $190.60 per share.
Warnings
Wall Street's average price target is $122.44 (from 23 analysts). Our estimate is 56% 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