Resources Connection, Inc. logo RGP - Resources Connection, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 7
HOLD 8
SELL 3
STRONG
SELL
0
| PRICE TARGET: $13.00 DETAILS
HIGH: $13.00
LOW: $13.00
MEDIAN: $13.00
CONSENSUS: $13.00
UPSIDE: 205.88%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 40% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Undervalued Strong
Trading 54.3% below fair value
Current Price $4.25
Bear Case $7.44 75.1% upside ($7.44 - $4.25) / $4.25 = 75.1% $0.62 × 12x P/E
Fair Value $9.30 118.8% upside ($9.30 - $4.25) / $4.25 = 118.8% $0.62 × 15x P/E
Bull Case $11.16 162.6% upside ($11.16 - $4.25) / $4.25 = 162.6% $0.62 × 18x P/E

Adjust Assumptions

15.0x
0.62$

Key Value Driver

Normalized P/E multiple (15x base case)

Implied Market Multiple 6.9x

Plain-Language Summary

Applying a 15x P/E to adjusted EPS of $0.62, the base-case value is $9.30 per share.

Analyst Consensus (External Reference)

Never blended into the bear/base/bull estimates above -- shown only as an outside comparison.

Average Target (18 analysts) $13.00
Analyst Range $13.00 – $13.00
Divergence from AlphaVal 28%

Warnings

Wall Street's average price target is $13.00 (from 18 analysts). Our estimate is 28% below 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