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 25.1% below fair value
Current Price $22.93
Bear Case $23.80 3.8% upside ($23.80 - $22.93) / $22.93 = 3.8% $1.70 × 14x
Fair Value $30.60 33.4% upside ($30.60 - $22.93) / $22.93 = 33.4% $1.70 × 18x
Bull Case $37.40 63.1% upside ($37.40 - $22.93) / $22.93 = 63.1% $1.70 × 22x

Adjust Assumptions

18.0x
1.7$

Key Value Driver

Through-cycle normalized EPS ($1.70)

Implied Market Multiple 13.5x

Plain-Language Summary

Using 7-year normalized EPS of $1.70 at a 18x cycle multiple, the base-case value is $30.60 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