UVV - Universal Corporation
Price:
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CONSENSUS:
Buy
DETAILS
AlphaVal
Deterministic, archetype-aware fair value
Stable Earnings Power
80% confidence
Primary model: P/Adj-EPS × Normalized Multiple
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