HENNESSY ADVISORS INC (HNNAZ)

Investment Advice

Latest Price

$24.90

TTM P/E

23.71

Normalized P/E

26.83

Div Yield

2.29%

Book Value

12.81

P/B Ratio

1.94

Valuation metrics

EPS: $1.27

Book value / share: $12.39

Formula: √(22.5 × EPS × BVPS)

Graham Number

$18.81

24% downside

Norm. op. income: $11M (median of 7yr)

Tax rate: 27%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$17.54

30% downside

Base FCF: $9M (median of recent 5yr)

Growth: -9%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$14.66

41% downside

EPS: $1.27

Target P/E: 27×

Formula: EPS × P/E

P/E Fair Value

$34.29

+38% upside