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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 Moderate
Trading 18.8% below fair value
Current Price $54.52
Bear Case $55.31 1.4% upside ($55.31 - $54.52) / $54.52 = 1.4% $3.95 × 14x P/E
Fair Value $67.16 23.2% upside ($67.16 - $54.52) / $54.52 = 23.2% $3.95 × 17x P/E
Bull Case $79.01 44.9% upside ($79.01 - $54.52) / $54.52 = 44.9% $3.95 × 20x P/E

Adjust Assumptions

17.0x
3.95$

Key Value Driver

Normalized P/E multiple (17x base case)

Implied Market Multiple 13.8x

Plain-Language Summary

Applying a 17x P/E to adjusted EPS of $3.95, the base-case value is $67.16 per share. DDM cross-check: $47.49.

Warnings

The company pays out 87% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
Dividend-based valuation: $47.49 (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