Herman Miller designs, manufactures, and distributes office furniture systems, seating products, other freestanding furniture elements, textiles, and related services in the United States and internationally. The company was founded in 1905 and is based in Zeeland, Michigan.
MLHR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Herman Miller Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Herman Miller Inc ranked in the 60th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 81% on a DCF basis. The most interesting components of our discounted cash flow analysis for Herman Miller Inc ended up being:
The company has produced more trailing twelve month cash flow than 58.83% of its sector Industrials.
81% of the company's capital comes from equity, which is greater than 59.05% of stocks in our cash flow based forecasting set.
Herman Miller Inc's effective tax rate, as measured by taxes paid relative to net income, is at 25 -- greater than 87.57% of US stocks with positive free cash flow.
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 MLHR, try AEGN, BLD, AYI, MNTX, and ARCB.