WOR
Worthington Industries, Inc.
$54.97
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 5.1% below fair value
You pay
$54.97
Bear
$46.34
Fair
$57.91
Bull
$69.50
Bear
$46.34
-15.7%
$3.68 × 12x P/E
Fair
$57.91
+5.4%
$3.68 × 15x P/E
Bull
$69.50
+26.4%
$3.68 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
14.9x
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 $66.00 from 15 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $57.91 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