The Gorman-Rupp Company logo GRC - The Gorman-Rupp Company

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AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 65% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Overvalued Moderate
Trading 39.5% above fair value
Current Price $72.66
Bear Case $41.67 42.6% downside ($41.67 - $72.66) / $72.66 = -42.6% $2.64 × 16x P/E
Fair Value $52.09 28.3% downside ($52.09 - $72.66) / $72.66 = -28.3% $2.64 × 20x P/E
Bull Case $62.51 14.0% downside ($62.51 - $72.66) / $72.66 = -14.0% $2.64 × 24x P/E

Adjust Assumptions

19.8x
2.64$

Key Value Driver

Normalized P/E multiple (20x base case)

Implied Market Multiple 27.6x

Plain-Language Summary

Applying a 20x P/E to adjusted EPS of $2.64, the base-case value is $52.09 per share. DDM cross-check: $14.26.

Warnings

The company's reported profits differ from official accounting profits by 30%. Check what costs are being left out of the adjusted number.
Dividend-based valuation: $14.26 (below our primary estimate by 73%). 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