VC
Visteon Corporation
$106.93
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 40.4% below fair value
You pay
$106.93
Bear
$151.70
Fair
$179.28
Bull
$206.86
Bear
$151.70
+41.9%
$7.54 × 22x P/E
Fair
$179.28
+67.7%
$7.54 × 26x P/E
Bull
$206.86
+93.5%
$7.54 × 30x P/E
Key Value Driver
Normalized P/E multiple (26x base case)
Implied Market Multiple
14.2x
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 $125.13 from 23 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $179.28 per share.
Warnings
Wall Street's average price target is $125.13 (from 23 analysts). Our estimate is 58% 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