Kimberly-Clark Corporation (KMB) Intrinsic Value & DCF Valuation
Household & Personal Products · NASDAQ
Current Price
$109.31
Intrinsic Value
$109.1
-0.2% margin of safety
What Is Kimberly-Clark Corporation's Intrinsic Value?
As of 2026-08-21, the base-case DCF model estimates the intrinsic value of Kimberly-Clark Corporation (KMB) at $109.1 per share, compared with a market price of $109.31, a margin of safety of -0.2%. The base case assumes 2.7% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $85.24 to $136.84. 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 Kimberly-Clark Corporation (KMB) Undervalued?
At $109.31, KMB trades about 0.2% above the base-case intrinsic value estimate, a modest premium. By this model the price sits within a normal band, though faster growth than assumed would change the picture.
COMPETITIVE MOAT
↑Strong Brand Recognition and Loyalty
KMB's iconic brands like Huggies and Kleenex command significant consumer trust and loyalty. This allows for premium pricing and repeat purchases in a competitive market.
↑Extensive Distribution Network
The company possesses a vast and established distribution system across global markets. This ensures widespread product availability and efficient supply chain management.
↑Economies of Scale in Manufacturing
Large-scale production facilities and efficient operations lead to cost advantages. This helps KMB maintain profitability even with competitive pricing pressures.
INVESTMENT RISKS
↓Intensifying Competition
The household and personal products sector is highly competitive. New entrants or aggressive strategies from existing players could erode market share and pricing power.
↓Input Cost Volatility
Raw material and manufacturing costs can fluctuate significantly. Unfavorable price movements could impact KMB's margins if not effectively managed through pricing or efficiency.
↓Consumer Spending Sensitivity
While staples, demand can still be affected by broader economic conditions. Significant economic downturns could lead consumers to trade down to cheaper alternatives.
Base case
KMB base case valuation
Intrinsic Value
$109.1
Margin of safety
-0.2%
Expected annual return
-0.0%
Base case assumptions: 2.7% annual growth, 10.0% discount rate, 14.17x exit multiple, 5 year projection. Data as of 2026-08-21.
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, together with its subsidiaries, manufactures and markets personal care products in the United States. It operates in two segments, North America and International Personal Care. The North America segment offers disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, reusable underwear, facial and bathroom tissue, paper towels, napkins, wipers, tissue, towels, soaps and sanitizers, and other related products under the Huggies, Pull-Ups, Goodnites, Kotex, Poise, Depend, Kleenex, Scott, Cottonelle, Viva, Wypall , and other brand names. Its International Personal Care segment provides baby and child care, adult care and feminine care, including disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, reusable underwear, and other related products under the Huggies, Kotex, Goodfeel, Intimus, Depend, and other brand names. The company sells its household use products directly to supermarkets, mass merchandisers, drugstores, warehouse clubs, variety and department stores, and other retail outlets, as well as through other distributors and e-commerce. It also sells its professional use products through distributors, directly to manufacturing, lodging, office building, food service, and high-volume public facilities, and through e-commerce. Kimberly-Clark Corporation was founded in 1872 and is headquartered in Dallas, Texas.
Financial Metrics — KMB Stock Valuation Data
Revenue/Share (TTM)
$49.80
FCF/Share (TTM)
$7.70
ROIC (TTM)
12.5%
ROE (TTM)
122.6%
P/FCF
14.2x
EV/EBITDA
13.7x
FCF Yield
7.06%
Debt/Equity
3.72x
Based on trailing twelve-month data, KMB shows a free cash flow per share of $7.70 and a ROIC of 12.5%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 14.2x and FCF yield of 7.06% 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 $7.70 in free cash flow per share. At the current price of $109.31, 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 14.2x with a free cash flow yield of 7.06%. 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 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 ($7.70) 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 3.72x, 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 12.5% shows moderate capital returns.
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 3.72x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 13.7x, 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 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.