Evercore: Increasing Our Fair Value Estimate to $215 From $177; Shares Fully Valued

We are increasing our fair value estimate to $215 per share from $177 for narrow-moat-rated Evercore. This corresponds to a forward price/adjusted earnings multiple of around 12 times and a forward enterprise value/EBITDA multiple of about 13 times. Of the net $38 increase in our fair value estimate, approximately $5 was from earnings since our previous valuation update, $18 is from increasing our forecast for senior managing director productivity by about 10%, $3 is from increasing our forecast for normalized operating margins by 0.5 percentage points, and the remaining $12 is from multiple adjustments, such as slightly higher senior managing director headcount growth, equities revenue growth, and investment management revenue growth.