KMB
Kimberly-Clark Corporation
$99.14
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 4.8% below fair value
You pay
$99.14
Bear
$85.77
Fair
$104.15
Bull
$122.53
Bear
$85.77
-13.5%
$6.09 × 14x P/E
Fair
$104.15
+5.1%
$6.09 × 17x P/E
Bull
$122.53
+23.6%
$6.09 × 20x P/E
Key Value Driver
Normalized P/E multiple (17x base case)
Implied Market Multiple
16.3x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $103.75 from 31 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $104.15 per share.
Warnings
The company pays out 84% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples