Masco Corporation (MAS) Stock Valuation — DCF Analysis
Furnishings, Fixtures & Appliances · NYSE
Current Price
$74.03
Intrinsic Value
$82.98
+10.8% margin of safety
COMPETITIVE MOAT
↑Strong Brand Recognition
Masco benefits from well-established brands like Delta and Hansgrohe in the plumbing and kitchen segments. This brand equity fosters customer loyalty and allows for premium pricing.
↑Distribution Network
The company possesses a robust distribution network, providing access to a wide range of customers, from professional contractors to retail consumers. This reach is difficult for smaller competitors to replicate.
↑Product Innovation
Masco consistently invests in product development and innovation, particularly in areas like water efficiency and smart home technology. This keeps their offerings competitive and appealing to evolving consumer demands.
INVESTMENT RISKS
↓Housing Market Sensitivity
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 their products.
↓Input Cost Volatility
Fluctuations in raw material prices, such as metals and plastics, can significantly affect Masco's profit margins. Managing these costs is a constant challenge.
↓Competitive Landscape
The furnishings, fixtures, and appliances industry is highly competitive, with numerous players vying for market share. Intense competition can pressure pricing and profitability.
Base case
MAS base case valuation
A base case discounted cash flow model for MAS estimates an intrinsic value of about $82.98 per share, against a current price of $74.03. The model assumes 6.0% annual free cash flow growth, a 10.0% discount rate, and a 16x exit multiple.
Intrinsic Value
$82.98
Margin of safety
+10.8%
Expected annual return
+2.3%
Base case assumptions: 6.0% annual growth, 10.0% discount rate, 16x 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 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)
$37.85
FCF/Share (TTM)
$4.65
ROIC (TTM)
26.3%
ROE (TTM)
-566.5%
P/FCF
15.8x
EV/EBITDA
12.9x
FCF Yield
6.31%
Debt/Equity
n/m
Based on trailing twelve-month data, MAS shows a free cash flow per share of $4.65 and a ROIC of 26.3%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 15.8x and FCF yield of 6.31% are important context metrics when evaluating MAS's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of MAS?
Masco Corporation currently generates $4.65 in free cash flow per share. At the current price of $74.03, 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 15.8x with a free cash flow yield of 6.31%. This P/FCF is in a moderate range. 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 ($4.65) as the base, (2) project future FCF growth over 5-10 years based on Furnishings, Fixtures & Appliances industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting MAS's risk profile — with a debt-to-equity of -13.64x, 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 Furnishings, Fixtures & Appliances trends, then discounting those amounts to today's dollars. MAS's ROIC of 26.3% indicates strong capital efficiency, which supports higher growth assumptions in the DCF model.
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 -13.64x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 12.9x, 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 Consumer Cyclical 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.