Quanex Building Products Corporation logo NX - Quanex Building Products Corporation

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AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Cyclical & Capital-Intensive 80% confidence

Primary model: Normalized Earnings × Cycle Multiple

Valuation Signal Undervalued Moderate
Trading 30.5% below fair value
Current Price $17.71
Bear Case $18.70 5.6% upside ($18.70 - $17.71) / $17.71 = 5.6% $1.70 × 14x + net cash
Fair Value $25.50 44.0% upside ($25.50 - $17.71) / $17.71 = 44.0% $1.70 × 18x + net cash
Bull Case $32.30 82.4% upside ($32.30 - $17.71) / $17.71 = 82.4% $1.70 × 22x + net cash

Adjust Assumptions

18.0x
1.7$

Key Value Driver

Through-cycle normalized EPS ($1.70)

Implied Market Multiple 10.4x

Plain-Language Summary

Using 7-year normalized EPS of $1.70 at a 18x cycle multiple, the base-case value is $25.50 per share.

Warnings

This company has a built-in lending arm whose debt is mixed in with the main business. We capped the debt adjustment to avoid overstating what the core business owes.

Key Risks

  • Standard 10-year DCF produces unreliable terminal values for cyclicals
  • 'Cheap' P/E at cycle peak is the most common value trap — normalize first
  • Captive finance subsidiaries have different risk profiles from manufacturing