Kimberly-Clark Corporation (KMB) Stock Valuation — DCF Analysis
Household & Personal Products · NASDAQ
Current Price
$102.29
Intrinsic Value
$109.65
+6.7% margin of safety
COMPETITIVE MOAT
↑Strong Brand Recognition
KMB's iconic brands like Huggies and Kleenex hold significant consumer loyalty. This established trust translates into consistent demand and pricing power.
↑Scale and Distribution Network
The company's vast manufacturing and distribution infrastructure create significant barriers to entry. This allows for efficient product delivery and cost advantages.
↑Product Innovation Focus
KMB's commitment to innovation, as seen with volume plus mix growth, helps maintain product relevance and capture market share. This drives repeat purchases and customer engagement.
INVESTMENT RISKS
↓Inflationary Pressures
Persistent inflation impacts input costs and consumer spending power. This can erode margins and necessitate difficult pricing decisions.
↓Sluggish Growth Concerns
The company faces challenges in demonstrating sustained top-line growth. Investors are looking for clearer signs of expansion beyond current initiatives.
↓Retailer Influence
Strong retailer bargaining power can pressure KMB's margins and product placement. Navigating these relationships is crucial for market access.
Base case
KMB base case valuation
A base case discounted cash flow model for KMB estimates an intrinsic value of about $109.65 per share, against a current price of $102.29. The model assumes 4.1% annual free cash flow growth, a 10.0% discount rate, and a 13x exit multiple.
Intrinsic Value
$109.65
Margin of safety
+6.7%
Expected annual return
+1.4%
Base case assumptions: 4.1% annual growth, 10.0% discount rate, 13x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the KMB valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Kimberly-Clark Corporation respond.
Open DCF Calculator for KMBCompany Overview
Kimberly-Clark Corporation, a Dallas, Texas-based entity established in 1872, operates as a global purveyor of personal hygiene and paper-based consumer goods. The company's business activities are structured into three distinct divisions. The Personal Care segment focuses on products like disposable infant diapers, training pants, baby wipes, and items designed for feminine and incontinence care. Well-known brands under this umbrella include Huggies, Kotex, and Depend, among others. Its Consumer Tissue segment supplies household essentials such as facial tissues, toilet paper, and paper towels, distributed under popular names like Kleenex, Scott, and Viva. The K-C Professional division caters to commercial and institutional clients, offering industrial wipers, specialized tissues, towels, apparel, soaps, and sanitizers, with brands including WypAll and Kimtech. Kimberly-Clark distributes its products intended for home use across a wide array of retail channels, including supermarkets, large-scale retailers, pharmacies, club stores, and e-commerce platforms. For its professional and commercial offerings, the company directly serves sectors such as manufacturing, hospitality, office buildings, and food services, as well as through various distributors and online sales.
Financial Metrics — KMB Stock Valuation Data
Revenue/Share (TTM)
$49.83
FCF/Share (TTM)
$7.77
ROIC (TTM)
15.4%
ROE (TTM)
143.6%
P/FCF
13.2x
EV/EBITDA
13.2x
FCF Yield
7.59%
Debt/Equity
3.94x
Based on trailing twelve-month data, KMB shows a free cash flow per share of $7.77 and a ROIC of 15.4%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 13.2x and FCF yield of 7.59% are important context metrics when evaluating KMB's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of KMB?
Kimberly-Clark Corporation currently generates $7.77 in free cash flow per share. At the current price of $102.29, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is KMB undervalued?
KMB trades at a P/FCF ratio of 13.2x with a free cash flow yield of 7.59%. This relatively low P/FCF may suggest the stock is attractively priced relative to its cash generation. However, whether KMB is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value KMB stock using DCF?
To perform a DCF valuation on Kimberly-Clark Corporation: (1) Start with the trailing free cash flow per share ($7.77) as the base, (2) project future FCF growth over 5-10 years based on Household & Personal Products industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting KMB's risk profile — with a debt-to-equity of 3.94x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to KMB?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Kimberly-Clark Corporation, this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Household & Personal Products trends, then discounting those amounts to today's dollars. KMB's ROIC of 15.4% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
How does WACC affect KMB stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For KMB, with a debt-to-equity ratio of 3.94x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 13.2x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See KMB PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Consumer Defensive valuationsDCF and P/E value KMB with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.