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Wolverine World Wide, Inc.
$17.71
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 18.0% below fair value
You pay
$17.71
Bear
$18.89
Fair
$21.60
Bull
$24.29
Bear
$18.89
+6.7%
$1.35 × 14x P/E
Fair
$21.60
+22.0%
$1.35 × 16x P/E
Bull
$24.29
+37.2%
$1.35 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
13.1x
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 $21.50 from 38 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $21.60 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