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
2.64$
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