Masco Corporation (MAS) Intrinsic Value & DCF Valuation
Construction Materials · NYSE
Current Price
$72.56
Intrinsic Value
$79.54
+8.8% margin of safety
What Is Masco Corporation's Intrinsic Value?
As of 2026-07-29, the base-case DCF model estimates the intrinsic value of Masco Corporation (MAS) at $79.54 per share, compared with a market price of $72.56, a margin of safety of +8.8%. The base case assumes 2.4% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $59.54 to $102.97. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is Masco Corporation (MAS) Undervalued?
At $72.56, MAS trades about 8.8% below the base-case intrinsic value estimate. That is a real discount, but it stays short of the 30% margin of safety required before calling a stock undervalued.
COMPETITIVE MOAT
↑Brand Recognition and Loyalty
Masco's established brands like Delta and Moen command strong consumer and professional recognition. This loyalty translates into pricing power and repeat business within the fixtures and appliances market.
↑Distribution Network Strength
The company benefits from extensive relationships with distributors and retailers. This broad reach ensures product availability and provides a competitive advantage in reaching a wide customer base.
↑Economies of Scale in Manufacturing
Masco's large-scale production facilities allow for cost efficiencies. This scale helps in maintaining competitive pricing and profitability, especially in a commoditized segment of the market.
INVESTMENT RISKS
↓Housing Market Cyclicality
Masco's performance is closely tied to the cyclical nature of the housing market. Downturns in new construction and home renovations directly impact demand for its products.
↓Raw Material Cost Volatility
Fluctuations in the cost of key raw materials like metals and plastics can significantly impact Masco's cost of goods sold. This volatility can squeeze profit margins if not effectively managed.
↓Supply Chain Disruptions
Global supply chain issues, including logistics challenges and component shortages, can impede production and delivery. This can lead to lost sales and increased operational costs.
Base case
MAS base case valuation
Intrinsic Value
$79.54
Margin of safety
+8.8%
Expected annual return
+1.9%
Base case assumptions: 2.4% annual growth, 10.0% discount rate, 10x exit multiple, 5 year projection. Data as of 2026-07-29.
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 MAS valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Masco Corporation respond.
Open DCF Calculator for MASCompany Overview
Masco Corporation is a prominent global manufacturer and distributor of home improvement and building products, serving markets across North America, Europe, and other international regions. The company operates through two main segments. Its Plumbing Products division offers a vast array of items, from fixtures like faucets, showerheads, and valves to comprehensive bathing solutions such as tubs, shower bases, sinks, and toilets. This segment also provides high-end offerings like spas, exercise pools, and fitness systems, alongside crucial plumbing system components made from brass, copper, and composites, as well as connected water technologies, thermoplastic solutions, and PEX tubing. These products are sold under numerous recognized brands, including DELTA, HANSGROHE, KRAUS, HOT SPRING, and ENDLESS POOLS. The Decorative Architectural Products segment enhances both the aesthetic and functional aspects of homes. Its portfolio includes various paints, primers, specialty coatings, stains, and waterproofing products, along with associated applicators. It also supplies diverse cabinet and door hardware, functional hardware, wall plates, closet organization systems, and picture hanging accessories. Additionally, this segment provides decorative bath hardware, mirrors, shower doors, and a wide selection of indoor and outdoor lighting fixtures, such as ceiling fans, landscape lighting, and LED systems. Key brands in this segment include BEHR, KILZ, LIBERTY, and KICHLER. Masco distributes its extensive product range through a broad network of channels, encompassing plumbing, heating, and hardware wholesalers; home centers and online retailers; independent hardware stores; electrical and landscape distributors; lighting showrooms; building supply outlets; and various mass merchandisers. Masco Corporation was founded in 1929 and is headquartered in Livonia, Michigan.
Financial Metrics — MAS Stock Valuation Data
Revenue/Share (TTM)
$38.34
FCF/Share (TTM)
$7.31
ROIC (TTM)
27.2%
ROE (TTM)
-406.4%
P/FCF
10.1x
EV/EBITDA
12.1x
FCF Yield
9.93%
Debt/Equity
n/m
On a trailing twelve-month basis, MAS generates free cash flow per share of $7.31 alongside a ROIC of 27.2%, both central inputs for a DCF valuation. Its P/FCF ratio of 10.1x and FCF yield of 9.93% then frame how MAS is priced against peers on a cash flow basis.
Frequently Asked Questions
What is the intrinsic value of MAS?
Masco Corporation currently generates $7.31 in free cash flow per share. At the current price of $72.56, 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 MAS undervalued?
MAS trades at a P/FCF ratio of 10.1x with a free cash flow yield of 9.93%. A low P/FCF means investors are paying less per dollar of free cash flow; whether that is cheap depends on the company's growth, cyclicality, and capital intensity. However, whether MAS 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 MAS stock using DCF?
To perform a DCF valuation on Masco Corporation: (1) Start with the trailing free cash flow per share ($7.31) as the base, (2) project future FCF growth over 5-10 years based on Construction Materials industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting MAS's risk profile — with a debt-to-equity of -9.57x, 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 MAS?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Masco Corporation, this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Construction Materials trends, then discounting those amounts to today's dollars. MAS's ROIC of 27.2% reflects how efficiently the company converts invested capital into profit.
How does WACC affect MAS stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For MAS, with a debt-to-equity ratio of -9.57x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 12.1x, 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 MAS 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 Basic Materials valuationsDCF and P/E value MAS with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.