DCF Tool


Mohawk Industries, Inc. – Carpet and Rug Mills
mohawk industries is a leading global flooring manufacturer that creates products to enhance residential and commercial spaces around the world. mohawk’s vertically integrated manufacturing and distribution processes provide competitive advantages in the production of carpet, rugs, ceramic tile, laminate, wood, stone and vinyl flooring. our industry-leading innovation has yielded products and technologies that differentiate our brands in the marketplace and satisfy all remodeling and new construction requirements. our brands are among the most recognized in the industry and include american olean, bigelow, daltile, durkan, karastan, lees, marazzi, mohawk, mohawk home, pergo, unilin and quick-step. during the past decade, mohawk has transformed its business from an american carpet manufacturer into the world’s largest flooring company with operations in australia, brazil, canada, china, europe, india, malaysia, mexico, russia and the united states.
Analysis Results
Intrinsic Value $261.85
Latest Price $83.92
Relative Value 68% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 4.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.2%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 0.928 0.862
2024 0.967 0.834
2025 1.01 0.807
2026 1.05 0.781
2027 1.09 0.756
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 19.7 billion. This corresponds to a present value of 12.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.04 billion. Adding in the terminal value gives a total present value of 16.7 billion.

There are presently 63.7 million outstanding shares, so the intrinsic value per share is 261.85.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 5,895,099,000
Current Cash 667,623,000
Current Liabilities 3,070,285,000
Current Debt 843,362,000
Non-Cash Working Capital (NCWC) 3,000,553,000
Change in NCWC 672,938,000
EBIT 939,988,000
Tax Provision 158,110,000
Depreciation and Amortization 595,464,000
Capital Expenditure -580,742,000
Unlevered Free Cash Flow 819,452,458
Current Assets 5,238,357,000
Current Cash 591,895,000
Current Liabilities 2,946,355,000
Current Debt 627,508,000
Non-Cash Working Capital (NCWC) 2,327,615,000
Change in NCWC 292,648,000
EBIT 1,335,011,000
Tax Provision 256,445,000
Depreciation and Amortization 591,711,000
Capital Expenditure -676,120,000
Unlevered Free Cash Flow 1,277,855,617
Current Assets 5,363,654,000
Current Cash 1,340,366,000
Current Liabilities 2,371,248,000
Current Debt 382,927,000
Non-Cash Working Capital (NCWC) 2,034,967,000
Change in NCWC -608,544,000
EBIT 636,002,000
Tax Provision 68,647,000
Depreciation and Amortization 607,507,000
Capital Expenditure -425,557,000
Unlevered Free Cash Flow 134,696,207
Current Assets 4,429,457,000
Current Cash 134,785,000
Current Liabilities 2,712,583,000
Current Debt 1,061,422,000
Non-Cash Working Capital (NCWC) 2,643,511,000
Change in NCWC -237,493,000
EBIT 827,224,000
Tax Provision 4,974,000
Depreciation and Amortization 576,452,000
Capital Expenditure -545,462,000
Unlevered Free Cash Flow 615,231,520
Current Assets 4,509,296,000
Current Cash 119,050,000
Current Liabilities 3,266,239,000
Current Debt 1,756,997,000
Non-Cash Working Capital (NCWC) 2,881,004,000
Change in NCWC 335,714,000
EBIT 1,095,326,000
Tax Provision 184,346,000
Depreciation and Amortization 521,765,000
Capital Expenditure -794,110,000
Unlevered Free Cash Flow 966,244,776
Current Assets 4,072,967,000
Current Cash 84,884,000
Current Liabilities 2,655,355,000
Current Debt 1,212,562,000
Non-Cash Working Capital (NCWC) 2,545,290,000
Change in NCWC 518,756,000
EBIT 1,354,173,000
Tax Provision 343,165,000
Depreciation and Amortization 446,672,000
Capital Expenditure -905,998,000
Unlevered Free Cash Flow 1,060,981,450
Current Assets 3,471,512,000
Current Cash 121,665,000
Current Liabilities 2,718,320,000
Current Debt 1,395,007,000
Non-Cash Working Capital (NCWC) 2,026,534,000
Change in NCWC 100,256,000
EBIT 1,279,943,000
Tax Provision 307,559,000
Depreciation and Amortization 409,467,000
Capital Expenditure -672,125,000
Unlevered Free Cash Flow 800,362,642
Current Assets 3,249,972,000
Current Cash 81,692,000
Current Liabilities 3,259,028,000
Current Debt 2,017,026,000
Non-Cash Working Capital (NCWC) 1,926,278,000
Change in NCWC -19,689,000
EBIT 837,566,000
Tax Provision 131,875,000
Depreciation and Amortization 362,647,000
Capital Expenditure -503,657,000
Unlevered Free Cash Flow 529,370,981
Current Assets 3,132,270,000
Current Cash 97,877,000
Current Liabilities 1,955,814,000
Current Debt 867,388,000
Non-Cash Working Capital (NCWC) 1,945,967,000
Change in NCWC 89,896,000
EBIT 772,796,000
Tax Provision 131,637,000
Depreciation and Amortization 345,570,000
Capital Expenditure -561,804,000
Unlevered Free Cash Flow 493,227,202
Current Assets 3,085,718,000
Current Cash 54,066,000
Current Liabilities 1,320,811,000
Current Debt 145,230,000
Non-Cash Working Capital (NCWC) 1,856,071,000
Change in NCWC 531,653,000
EBIT 546,931,000
Tax Provision 78,385,000
Depreciation and Amortization 308,871,000
Capital Expenditure -366,550,000
Unlevered Free Cash Flow 924,688,714
Current Assets 2,550,046,000
Current Cash 477,672,000
Current Liabilities 828,649,000
Current Debt 80,693,000
Non-Cash Working Capital (NCWC) 1,324,418,000
Change in NCWC -64,300,000
EBIT 379,508,000
Tax Provision 53,599,000
Depreciation and Amortization 280,293,000
Capital Expenditure -208,294,000
Unlevered Free Cash Flow 320,403,112

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