WWW
Wolverine World Wide, Inc.
$16.41
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 22.5% below fair value
You pay
$16.41
Bear
$18.54
Fair
$21.19
Bull
$23.84
Bear
$18.54
+13.0%
$1.32 × 14x P/E
Fair
$21.19
+29.1%
$1.32 × 16x P/E
Bull
$23.84
+45.3%
$1.32 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
12.4x
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 $21.25 from 38 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $21.19 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