Mueller Water Products, Inc. logo MWA - Mueller Water Products, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 10
HOLD 11
SELL 0
STRONG
SELL
0
| PRICE TARGET: $30.80 DETAILS
HIGH: $35.00
LOW: $25.00
MEDIAN: $32.00
CONSENSUS: $30.80
UPSIDE: 24.52%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Platform & Compounding FCF 50% confidence

Primary model: Two-stage FCF DCF

Valuation Signal Overvalued Moderate
Trading 19.3% above fair value
Current Price $24.73
Bear Case $17.07 31.0% downside ($17.07 - $24.73) / $24.73 = -31.0% 4% stage 1 growth, 11% discount
Fair Value $20.73 16.2% downside ($20.73 - $24.73) / $24.73 = -16.2% 7% stage 1 growth, 11% discount
Bull Case $24.00 3.0% downside ($24.00 - $24.73) / $24.73 = -3.0% 9% stage 1 growth, 11% discount

Adjust Assumptions

6.6%
11.0%
3.0%

Key Value Driver

FCF growth rate (7% base case)

Terminal Value % of EV 36%
Implied Market Multiple 23.7x
Market is pricing in (growth) 11.3% vs our 6.6% base

Plain-Language Summary

Our base-case estimate uses a two-stage discounted cash flow model based on free cash flow. We then blend that result with the average analyst price target of $30.80 from 21 analysts, using a 25% weight on analyst consensus. That produces an estimated intrinsic value of $20.73 per share.

Warnings

Wall Street's average price target is $30.80 (from 21 analysts). Our estimate is 44% below the consensus -- consider that gap carefully.

Key Risks

  • P/E alone misleads — earnings depressed by growth investment
  • Cyclical or commodity businesses may be misclassified as platforms
  • Terminal value dominance suggests sensitivity to long-run assumptions