Kimberly-Clark Corporation (KMB) Intrinsic Value & DCF Valuation
Household & Personal Products · NASDAQ
Current Price
$110.03
Intrinsic Value
$116.94
+5.9% margin of safety
What Is Kimberly-Clark Corporation's Intrinsic Value?
As of 2026-07-30, the base-case DCF model estimates the intrinsic value of Kimberly-Clark Corporation (KMB) at $116.94 per share, compared with a market price of $110.03, a margin of safety of +5.9%. The base case assumes 4.4% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $91.15 to $146.87. 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 $110.03, KMB trades about 5.9% 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
↑Strong Brand Recognition and Loyalty
Kimberly-Clark's established brands like Huggies and Kleenex benefit from deep consumer trust and habitual purchasing. This creates significant brand equity that is difficult for competitors to replicate.
↑Extensive Distribution Network
The company possesses a vast and efficient global distribution system. This allows for broad market penetration and ensures product availability, creating a barrier for smaller rivals.
↑Economies of Scale in Manufacturing
Large-scale production facilities enable Kimberly-Clark to achieve cost efficiencies. This competitive cost structure is challenging for new entrants to match.
INVESTMENT RISKS
↓Commodity Price Volatility
Fluctuations in the cost of raw materials like pulp and energy can significantly impact profitability. KMB's ability to pass these costs on is not guaranteed.
↓Shifting Consumer Preferences
Changes in consumer demand towards more sustainable or specialized products could disrupt KMB's traditional offerings. Failure to adapt quickly poses a risk.
↓New Entrants and Disruptive Innovation
The emergence of new, agile competitors or innovative product technologies could challenge KMB's established market position. The recent launch of Arbex highlights this potential.
Base case
KMB base case valuation
Intrinsic Value
$116.94
Margin of safety
+5.9%
Expected annual return
+1.2%
Base case assumptions: 4.4% annual growth, 10.0% discount rate, 14x exit multiple, 5 year projection. Data as of 2026-07-30.
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
14.1x
FCF Yield
7.06%
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 7.06% 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 $7.77 in free cash flow per share. At the current price of $110.03, 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 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 ($7.77) 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% reflects how efficiently the company converts invested capital into profit.
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 14.1x, 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 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 2026-07-30. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.