Update shared on02 Aug 2025
Fair value Increased 42%Compass Diversified's fair value estimate has been substantially raised, primarily driven by a notable increase in its future P/E multiple, resulting in a higher analyst price target from $12.65 to $18.00.
What's in the News
- Two securities class action lawsuits have been filed against Compass Diversified and certain officers/directors, alleging material misstatements and omissions regarding financial condition and internal controls.
- Lawsuits claim that subsidiary Lugano Holdings engaged in accounting irregularities, unrecorded financing, and misstated sales, inventory, and accounts receivable from 2022-2024.
- Allegations include failure to maintain effective internal controls for financial reporting, leading to materially misstated company financials.
- Compass Diversified announced inability to file its upcoming 10-Q with the SEC by the required deadline.
Valuation Changes
Summary of Valuation Changes for Compass Diversified
- The Consensus Analyst Price Target has significantly risen from $12.65 to $18.00.
- The Future P/E for Compass Diversified has significantly risen from 4.10x to 5.84x.
- The Discount Rate for Compass Diversified remained effectively unchanged, at 7.39%.
Disclaimer
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