AlphaMadera's AlphaVal page classifies Standard Motor Products, Inc. as a Stable Earnings Power business and values it using P/Adj-EPS × Normalized Multiple, then compares the result to the current market price to flag SMP as undervalued, fairly valued, or overvalued.

What is Standard Motor Products, Inc.'s fair value?

Fair value for SMP comes from a P/Adj-EPS × Normalized Multiple model -- the approach AlphaVal selected for this company's Stable Earnings Power classification. The live AlphaVal page shows bear, base, and bull scenarios alongside the key assumption behind each.

How does AlphaMadera value SMP?

AlphaVal routes each company to one of ten valuation archetypes based on its business model. SMP was classified as Stable Earnings Power and is valued using P/Adj-EPS × Normalized Multiple, built from SMP's most recent reported fundamentals.

SMP - Standard Motor Products, Inc.

Price: -- -- | CONSENSUS: Buy DETAILS

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 80% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Fair Value Moderate

Trading 24.7% below fair value

Current Price $37.20

Bear Case $43.24 16.2% upside ($43.24 - $37.20) / $37.20 = 16.2% $2.85 × 15x P/E

Fair Value $49.41 32.9% upside ($49.41 - $37.20) / $37.20 = 32.9% $2.85 × 17x P/E

Bull Case $55.59 49.5% upside ($55.59 - $37.20) / $37.20 = 49.5% $2.85 × 20x P/E

Adjust Assumptions

P/E Multiple

17.3x

Adjusted EPS

2.85$

Key Value Driver

Normalized P/E multiple (17x base case)

Terminal Value % of EV

Implied Market Multiple 13.1x

Market is pricing in (growth)

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