WOR
Worthington Industries, Inc.
$55.14
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 26.6% below fair value
You pay
$55.14
Bear
$60.11
Fair
$75.14
Bull
$90.16
Bear
$60.11
+9.0%
$5.19 × 12x P/E
Fair
$75.14
+36.3%
$5.19 × 15x P/E
Bull
$90.16
+63.5%
$5.19 × 18x P/E
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
10.6x
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 $67.00 from 15 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $75.14 per share.
Warnings
The company's reported profits differ from official accounting profits by 170%. Check what costs are being left out of the adjusted number.
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