MDU Resources Group, Inc. logo MDU - MDU Resources Group, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 7
HOLD 9
SELL 2
STRONG
SELL
0
| PRICE TARGET: $21.00 DETAILS
HIGH: $21.00
LOW: $21.00
MEDIAN: $21.00
CONSENSUS: $21.00
DOWNSIDE: 5.23%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 65% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Undervalued Moderate
Trading 25.9% below fair value
Current Price $22.16
Bear Case $23.91 7.9% upside ($23.91 - $22.16) / $22.16 = 7.9% $1.81 × 15x P/E
Fair Value $29.89 34.9% upside ($29.89 - $22.16) / $22.16 = 34.9% $1.81 × 18x P/E
Bull Case $35.87 61.8% upside ($35.87 - $22.16) / $22.16 = 61.8% $1.81 × 22x P/E

Adjust Assumptions

18.2x
1.81$

Key Value Driver

Normalized P/E multiple (18x base case)

Implied Market Multiple 12.2x

Plain-Language 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 $21.00 from 18 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $29.89 per share.

Warnings

The company's reported profits differ from official accounting profits by 95%. Check what costs are being left out of the adjusted number.
Wall Street's average price target is $21.00 (from 18 analysts). Our estimate is 56% above the consensus -- consider that gap carefully.

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