Kimberly-Clark Corporation (KMB) Stock Valuation — DCF Analysis
Household & Personal Products · NASDAQ
Current Price
$109.91
Intrinsic Value
$115.55
+4.9% 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 $115.55 per share, against a current price of $109.91. The model assumes 4.1% annual free cash flow growth, a 10.0% discount rate, and a 14x exit multiple.
Intrinsic Value
$115.55
Margin of safety
+4.9%
Expected annual return
+1.0%
Base case assumptions: 4.1% annual growth, 10.0% discount rate, 14x exit multiple, 5 year projection. Data as of 2026-06-29.
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 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)
$49.83
FCF/Share (TTM)
$7.77
ROIC (TTM)
15.4%
ROE (TTM)
143.6%
P/FCF
14.2x
EV/EBITDA
14.0x
FCF Yield
7.07%
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 14.2x and FCF yield of 7.07% 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 $109.91, 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 7.07%. 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 14.0x, 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 2026-06-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.