Whirlpool Corporation manufactures and markets home appliances and related products worldwide. The companys principal products include laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, mixers, and other portable household appliances. The company was founded in 1898 and is based in Benton Harbor, Michigan.
WHR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Whirlpool Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Whirlpool Corp ranked in the 65th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 192.33% on a DCF basis. In terms of the factors that were most noteworthy in this DCF analysis for WHR, they are:
As a business, WHR is generating more cash flow than 83.38% of positive cash flow stocks in the Consumer Cyclical.
Whirlpool Corp's weighted average cost of capital (WACC) is 5%; for context, that number is higher than only 4.2% of tickers in our DCF set.
WHR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than only 4.2% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
LDL, MTN, RUSHA, JACK, and THO can be thought of as valuation peers to WHR, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.