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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 16.7% below fair value
Current Price $53.75
Bear Case $53.12 1.2% downside ($53.12 - $53.75) / $53.75 = -1.2% $3.78 × 14x P/E
Fair Value $64.50 20.0% upside ($64.50 - $53.75) / $53.75 = 20.0% $3.78 × 17x P/E
Bull Case $75.89 41.2% upside ($75.89 - $53.75) / $53.75 = 41.2% $3.78 × 20x P/E

Adjust Assumptions

17.1x
3.78$

Key Value Driver

Normalized P/E multiple (17x base case)

Implied Market Multiple 14.2x

Plain-Language Summary

Applying a 17x P/E to adjusted EPS of $3.78, the base-case value is $64.50 per share. DDM cross-check: $47.49.

Warnings

The company's reported profits differ from official accounting profits by 191%. Check what costs are being left out of the adjusted number.
The company pays out 253% 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 26%). 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