HNI Corporation engages in the design, manufacture, and marketing of office furniture and hearth products primarily in the United States, Canada, China, Hong Kong, India, and Taiwan. The company was founded in 1944 and is based in Muscatine, Iowa.
HNI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Hni Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Hni Corp ranked in the 79th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 359.5%. The most interesting components of our discounted cash flow analysis for Hni Corp ended up being:
The company's debt burden, as measured by earnings divided by interest payments, is 13.18; that's higher than 80.94% of US stocks in the Industrials sector that have positive free cash flow.
Hni Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than just 22.63% of tickers in our DCF set.
HNI's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 3%; for context, that number is higher than just 22.63% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as HNI, try ABM, SWBI, MGRC, ACTG, and EML.
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