Standard Motor Products, Inc. logo SMP - Standard Motor Products, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS
STRONG
BUY
0
BUY 10
HOLD 1
SELL 1
STRONG
SELL
0
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 80% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Undervalued Moderate
Trading 25.8% below fair value
Current Price $36.67
Bear Case $43.24 17.9% upside ($43.24 - $36.67) / $36.67 = 17.9% $2.85 × 15x P/E
Fair Value $49.41 34.8% upside ($49.41 - $36.67) / $36.67 = 34.8% $2.85 × 17x P/E
Bull Case $55.59 51.6% upside ($55.59 - $36.67) / $36.67 = 51.6% $2.85 × 20x P/E

Adjust Assumptions

17.3x
2.85$

Key Value Driver

Normalized P/E multiple (17x base case)

Implied Market Multiple 12.9x

Plain-Language Summary

Applying a 17x P/E to adjusted EPS of $2.85, the base-case value is $49.41 per share. DDM cross-check: $35.32.

Warnings

⚠ The company's reported profits differ from official accounting profits by 55%. Check what costs are being left out of the adjusted number.
ℹ Dividend-based valuation: $35.32 (below our primary estimate by 29%). Large gaps may signal the dividend doesn't reflect full earning power.

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