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 73th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 263.17%. In terms of the factors that were most noteworthy in this DCF analysis for WHR, they are:
Whirlpool Corp's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 2.64% 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 2.64% of tickers in our DCF set.
As a business, Whirlpool Corp experienced a tax rate of about 26% over the past twelve months; relative to its sector (Consumer Cyclical), this tax rate is higher than 87.21% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as WHR, try SNBR, LBTYA, RUTH, MGA, and SBGI.
Home appliance company Whirlpool (NYSE: WHR) announced this week in an SEC filing that it expects to pay between $260 million and $280 million in restructuring costs this year, including severance pay for terminated workers. Whirlpool earlier launched cost-cutting initiatives such as limiting business travel, furloughing employees, and encouraging voluntary retirements. Whirlpool has not yet said how many employees will be terminated as a result of the new decision.
The number of confirmed cases of the coronavirus illness COVID-19 in the U.S. climbed above 2.6 million on Wednesday, a day after Dr. Anthony Fauci said it could spike to more than 100,000 a day if the fresh clusters emerging in the South and West are not brought under control.
Whirlpool (WHR) says it expects to incur $95M in employee termination costs as part of its continued cost reduction efforts, according to an SEC filing.The company now expects total full-year restructuring charges of $260M-$280M, which includes original guidance of $100M.Whirlpool said yesterday that it will lay off an unspecified portion of...