VSTS
Vestis Corporation
$13.65
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Overvalued
Trading 36.3% above fair value
You pay
$13.65
Bear
$8.01
Fair
$10.01
Bull
$12.02
Bear
$8.01
-41.3%
$0.67 × 12x P/E
Fair
$10.01
-26.6%
$0.67 × 15x P/E
Bull
$12.02
-12.0%
$0.67 × 18x P/E
Adjust Assumptions
15.0x
0.67$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
20.4x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (7 analysts)
$10.75
Divergence from AlphaVal
7%
Summary
Applying a 15x P/E to adjusted EPS of $0.67, the base-case value is $10.01 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