Mueller Industries manufactures and sells plumbing, heating, ventilation, and air-conditioning products, as well as refrigeration and industrial products in the United States, Canada, Mexico, Great Britain, and China. The company was founded in 1900 and is based in Memphis, Tennessee.
MLI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for MLI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Mueller Industries Inc ranked in the 65th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 82.67%. The most interesting components of our discounted cash flow analysis for Mueller Industries Inc ended up being:
Mueller Industries Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 23.76% of tickers in our DCF set.
MLI'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 merely 23.76% of tickers in our DCF set.
As a business, Mueller Industries Inc experienced a tax rate of about 20% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than 79.13% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
PAC, RGR, NXTD, HI, and TPC can be thought of as valuation peers to MLI, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.