GRC - The Gorman-Rupp Company
Price:
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CONSENSUS:
Hold
DETAILS
AlphaVal
Deterministic, archetype-aware fair value
Stable Earnings Power
65% confidence
Primary model: P/Adj-EPS × Normalized Multiple
Adjust Assumptions
19.8x
2.02$
Key Value Driver
Normalized P/E multiple (20x base case)
Implied Market Multiple
38.5x
Plain-Language Summary
Applying a 20x P/E to adjusted EPS of $2.02, the base-case value is $39.93 per share. DDM cross-check: $13.51.
Warnings
Dividend-based valuation: $13.51 (below our primary estimate by 66%). 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