Mohawk Industries, Inc. designs, manufactures, sources, distributes, and markets flooring products for residential and commercial applications for remodeling and new constructions worldwide. It operates in three segments: Carpet, Ceramic, and Laminate and Wood. The company was founded in 1988 and is based in Calhoun, Georgia.
MHK Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Mohawk Industries Inc. To summarize, we found that Mohawk Industries Inc ranked in the 91th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 2983%. As for the metrics that stood out in our discounted cash flow analysis of Mohawk Industries Inc, consider:
Mohawk Industries Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 13.39% of tickers in our DCF set.
Mohawk Industries Inc's effective tax rate, as measured by taxes paid relative to net income, is at 1 -- greater than only 22.42% of US stocks with positive free cash flow.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 0% of stocks in its sector (Consumer Cyclical).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
STKS, EYE, MIK, FOXA, and BITA can be thought of as valuation peers to MHK, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.