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

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

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 80% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Fair Value Mild
Trading 13.6% below fair value
Current Price $37.90
Bear Case $38.37 1.2% upside ($38.37 - $37.90) / $37.90 = 1.2% $2.53 × 15x P/E
Fair Value $43.85 15.7% upside ($43.85 - $37.90) / $37.90 = 15.7% $2.53 × 17x P/E
Bull Case $49.33 30.2% upside ($49.33 - $37.90) / $37.90 = 30.2% $2.53 × 20x P/E

Adjust Assumptions

17.3x
2.53$

Key Value Driver

Normalized P/E multiple (17x base case)

Implied Market Multiple 15.0x

Plain-Language Summary

Applying a 17x P/E to adjusted EPS of $2.53, the base-case value is $43.85 per share. DDM cross-check: $35.49.

Warnings

The company's reported profits differ from official accounting profits by 37%. Check what costs are being left out of the adjusted number.

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