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 77th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 288%. As for the metrics that stood out in our discounted cash flow analysis of Whirlpool Corp, consider:
The company has produced more trailing twelve month cash flow than 91.34% of its sector Consumer Cyclical.
Whirlpool Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 2.97% of tickers in our DCF set.
WHR'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 2.97% of tickers in our DCF set.
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 Whirlpool Corp? See GIL, XPEL, F, LGF.B, and HBI.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
This article is a bit of a subscriber request, from two people who contacted me with regards to Whirlpool (WHR). I went neutral on the company a few months back, after a very long time of being bullish. Since that time, the company has slightly underperformed the S&P 500, making...