VSTS
Vestis Corporation
$13.74
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Overvalued
Trading 11.3% above fair value
You pay
$13.74
Bear
$9.88
Fair
$12.35
Bull
$14.82
Bear
$9.88
-28.1%
$0.85 × 12x P/E
Fair
$12.35
-10.1%
$0.85 × 15x P/E
Bull
$14.82
+7.9%
$0.85 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
16.2x
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 $10.75 from 7 analysts, using a 20% weight on analyst consensus. That produces an estimated intrinsic value of $12.35 per share.
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