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 63st percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 46.5%. As for the metrics that stood out in our discounted cash flow analysis of Mueller Industries Inc, consider:
The compound growth rate in the free cash flow of Mueller Industries Inc over the past 5.5 years is 0.16%; that's better than 64.05% of cash flow producing equities in the Industrials sector, where it is classified.
Mueller Industries Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 24.78% of tickers in our DCF set.
Mueller Industries Inc's effective tax rate, as measured by taxes paid relative to net income, is at 18 -- greater than 72.96% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Mueller Industries Inc? See GLBS, AVY, HA, PFSW, and QRHC.