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

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 8
HOLD 8
SELL 2
STRONG
SELL
0
| PRICE TARGET: $23.00 DETAILS
HIGH: $25.00
LOW: $21.00
MEDIAN: $23.00
CONSENSUS: $23.00
UPSIDE: 8.24%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 85% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Undervalued Moderate
Trading 33.7% below fair value
Current Price $21.25
Bear Case $28.03 31.9% upside ($28.03 - $21.25) / $21.25 = 31.9% $1.81 × 17x P/E
Fair Value $32.03 50.7% upside ($32.03 - $21.25) / $21.25 = 50.7% $1.81 × 19x P/E
Bull Case $36.03 69.6% upside ($36.03 - $21.25) / $21.25 = 69.6% $1.81 × 22x P/E

Adjust Assumptions

19.4x
1.81$

Key Value Driver

Normalized P/E multiple (19x base case)

Implied Market Multiple 11.7x

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 $23.00 from 18 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $32.03 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 $23.00 (from 18 analysts). Our estimate is 52% 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