Energizer Holdings (ENR:NYS) Fundamental Valuation Report

Fundamental Valuation Report

Energizer Holdings(ENR:NYS)

Technology:Electronic Components

This Report was generated using the valuation tools available on StockCalc.com. For a free 30 day trial click here.

Close Price/Date
$48.29 (USD) 19/11/2018

Weighted Valuation
$58.65 (USD)

Overall Rating
Undervalued by 21.4%

Valuation Models Analyst Consensus: $62.67 (USD)
(in order of importance) Multiples: $52.62 (USD)
Valuation Methods This company is:
Cash Flow: Undervalued on a Cash Flow Valuation
Comparable Company: Overvalued on a Comparable Valuation
Asset: Overvalued on an Asset Valuation

Company Overview (ENR:NYS USD)

Price 48.29
Range 47.00 – 49.31
52 week 44.97 – 65.06
Open 48.59
Vol / Avg. 1.92M/867856
Mkt cap 2.88B
P/E 31.77
Div/yield 1.16/0.02
EPS 1.52
Shares 59.61M
Beta 0.00

Company Description

Energizer Holdings Inc makes and distributes household batteries, specialty batteries, and lighting products. Energizer offers batteries using lithium, alkaline, carbon zinc, nickel metal hydride, zinc air, and silver oxide technologies. These products are sold under the Energizer and Eveready brands, at performance and premium price segments. Roughly half of the firm’s revenue is generated in North America, and the rest comes from Latin America, Europe, the Middle East, Africa, and Asia-Pacific.

Valuation Details

 We have up to 6 valuation points for each company. Details are at the bottom of the report.

Discounted Cash Flow and Sensitivity Analysis for ENR:NYS

Using a discounted cash flow model we generated an intrinsic value of $97.67 (USD) for ENR:NYS

Sensitivity Analysis

(showing how changes in the input variables impact the DCF calculation)

ENR:NYS Current Values Valuation If Dropped * Valuation If Raised *
Calculated Value: $97.67 1% 5% 1% 5%
WACC (or Ke) 6.32 $126.66 $78.31
Terminal Growth Rate 1.30 $80.10 $123.97
Tax Rate 0.29 $105.57 $89.77
Cash Flow 498,902,500 $92.08 $103.26
Capital Expenditures 0 $97.67 $97.67
Long Term Debt 1,043,100,000 $98.54 $96.79

* Changes are absolute: ex WACC from 8% to 7%

Comparables Model

Using similar companies and price based ratios we generated a valuation of $33.15 (USD) for ENR:NYS. We also generated a valuation of $42.75 (USD) using other metrics and comparables.
The comparable companies were Advanced Energy Indus (AEIS:NAS), AVX (AVX:NYS), Acuity Brands (AYI:NYS), EnerSys (ENS:NYS) and OSI Systems (OSIS:NAS).

Company ENR:NYS End Date Value
Earnings/Share $1.52 (USD)
Book Value/Share $0.80 (USD)
Sales/Share $29.34 (USD)
Cash Flow/Share $3.89 (USD)
EBITDA/Share $5.19 (USD)
Price Based on Comps Adjustment Factor (%)
$60.36 (USD) 0.0
$1.99 (USD) 0.0
$45.89 (USD) 0.0
$11.74 (USD) 0.0
$45.76 (USD) 0.0
ENR:NYS Ratios Used Average Values AEIS:NAS AVX:NYS AYI:NYS ENS:NYS OSIS:NAS
28.67 PE Ratio 39.71 17.14 98.12 14.75 28.83 0.00
73.29 PB Ratio 2.48 2.76 1.26 2.94 2.86 2.58
2.00 PS Ratio 1.56 2.30 1.67 1.40 1.29 1.16
15.10 PCF Ratio 13.30 10.44 12.28 14.58 15.81 13.38
12.79 EV to EBITDA 8.82 5.91 7.20 9.74 10.94 10.29

Multiples

Using a multiples approach we generated a valuation of  $52.62 (USD) for ENR:NYS

Company ENR:NYS End Date Value
Earnings/Share $1.52 (USD)
Book Value/Share $0.80 (USD)
Sales/Share $29.34 (USD)
Cash Flow/Share $3.89 (USD)
EBITDA/Share $5.19 (USD)
Price Based on Comps Adjustment Factor
$34.10 (USD) 0
$49.33 (USD) 0
$52.05 (USD) 0
$60.23 (USD) 0
$67.36 (USD) 0
Ratios Ratio Average
PE Ratio 22.43
PB Ratio 61.52
PS Ratio 1.77
PCF Ratio 15.47
EV to EBITDA 12.98

Adjusted Book Value versus Historical Price to Book

The average the Price to Book ratio for  ENR:NYS for the last 1 years was  62.02

We ran the Adjusted Book Value for  ENR:NYS and generated a book value of  $0.41 (USD)
By multiplying these we get an adjusted valuation of  $25.49 (USD)

Analyst Data

In the Stockcalc database there are 3 analysts that provide a valuation for ENR:NYS. The 3 analysts have a concensus valuation for ENR:NYS for 2019 of $62.67 (USD).

ENR:NYS Energizer Holdings

Analyst Recommendation
Buy Hold Sell Rating
(of 5)
Guidance As Of
1 2 0 3.6667 Outperform 2018-11-16

Current Price: 48.29 USD

Analyst Consensus
USD Millions 2019 2020 2021
Mean EPS 3.18 4.01 3.76
# EPS Analysts 3 2 1
Mean Revenue 2,017.90 2,245.40 1,827.90
# Revenue Analysts 3 2 1
Mean Target Price 62.67
Mean Cash Flow 3.31 5.23 4.75
Mean EBITDA 382.40 440.00 492.50
Mean Net Income 208.60 237.90 209.40
Mean Debt Outstanding 537.50 444.00
Mean Tax Rate 23.00 23.00
Mean Growth Rate
Mean Capital Expenditure 40.70 46.70 36.60

Explanation of Valuation Models

We have up to 6 valuation points for each company in the database.

The Discounted Cash Flow (DCF) valuation is a cash flow model where cash flow projections are discounted back to the present to calculate value per share. DCF is a common valuation technique especially for companies undergoing irregular cash flows such as resource companies (mining, forestry, oil and gas) going though price cycles or smaller companies about to generate cash flow (junior exploration companies, junior pharma, technology firms…).

The Price Comparables valuation is the result of valuing the company we are looking at on the basis of ratios from selected comparable companies: Price to Earnings, Price to Book, Price to Sales, Price to Cash Flow, Enterprise Value (EV) to EBITDA. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

We have included the Other Comparables as a way to value companies that cannot be valued using Earnings based ratios. This technique is very useful for companies still experiencing negative cash flows such as mining exploration firms. We use Cash/Share, Book Value/Share, MarketCap, 1 Year Return, NetPPE as the ratios here. Each of these ratios for the selected comparable companies are averaged and multiplied by the values for the company we are interested in to calculate a value per share for our selected company.

Multiples are similar to Price comparables where we look at current or historic ratios for the company in question to assess what it should be worth today based on those historic ratios. We use the same 5 ratios as in the price comparables and value the company with its historic averages.

With Adjusted Book Value (ABV) we calculate the book value per share for the company based on its balance sheet and multiply that book value per share by its historical price to book ratio to calculate a value per share.

If we have Analyst coverage for the company we use the consensus target price here.

Notice to User


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