WMK
Weis Markets, Inc.
$72.53
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Overvalued
Trading 65.6% above fair value
You pay
$72.53
Bear
$36.50
Fair
$43.80
Bull
$51.10
Bear
$36.50
-49.7%
$3.65 × 10x P/E
Fair
$43.80
-39.6%
$3.65 × 12x P/E
Bull
$51.10
-29.5%
$3.65 × 14x P/E
Adjust Assumptions
12.0x
3.65$
Key Value Driver
Normalized P/E multiple (12x base case)
Implied Market Multiple
19.9x
Summary
Applying a 12x P/E to adjusted EPS of $3.65, the base-case value is $43.80 per share. DDM cross-check: $20.30.
Warnings
Dividend-based valuation: $20.30 (below our primary estimate by 54%). Large gaps may signal the dividend doesn't reflect full earning power.
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