Mohawk Industries, Inc.

MHK

Consumer CyclicalFurnishings, Fixtures & AppliancesNYSE

$103.83

Market Cap: $6.33B

Mohawk Industries, Inc. (MHK) Valuation Summary

Updated May 10, 2026 07:32

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$76.98 – $820.01	$162.16	+56.2%
Growth Exit 10Y	$64.80 – $618.74	$129.61	+24.8%
EBITDA Exit 5Y	$104.23 – $281.42	$185.28	+78.4%
EBITDA Exit 10Y	$94.77 – $272.59	$170.15	+63.9%
▸ Trading Multiples
P/E	$98.20 – $142.34	$135.59	+30.6%
EV/EBITDA	$158.07 – $218.62	$174.89	+68.4%
EV/Revenue	$93.53 – $622.28	$309.70	+198.3%
▸ PEG
PEG Fair Value	$215.06 – $215.06	$215.06	+107.1%
▸ Earnings Power Value
Earnings Power Value	$87.72 – $160.24	$115.47	+11.2%
▸ Dividend Discount
Dividend Discount	—	N/A	—

Valuation History

DCF Analysis

Fair Value

$162.16

Market Price

$103.83

Upside / Downside

+56.2%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Mohawk Industries, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 1.6% to -0.9% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 61, DPO 59, DIO 113). At a 6.4% WACC with mid-year discounting, the terminal value (90% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $162.16 per share, suggesting MHK is undervalued by 56.2% at the current price of $103.83.

FCFF Present Value Calculation

WACC

6.39%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	754	777	808	830	822	843
(−) Net Interest	50	51	53	55	54	55
(+) D&A	553	526	522	516	544	558
EBITDA	1,356	1,355	1,383	1,400	1,420	1,456

(−) Tax	277	285	296	305	302	309
(−) CapEx	543	560	581	597	592	607
(−) ΔWC	764	95	122	90	-31	-32
Free Cash Flow (FCFF)	-227	415	383	408	558	572

Terminal Value						14,705
WACC / Discount Rate	6.4%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	-220	378	328	329	422	10,787

Enterprise Value	12,024
Projection Period	1,237	10.3%
Terminal Value	10,787	89.7%

(−) Current Net Debt	1,906

Equity Value	10,119
(/) Outstanding Shares	62

Fair Price	$162.16

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
4.4%	$246	$300	$382	$522	$820
5.4%	$171	$198	$234	$285	$363
6.4%	$127	$142	$162	$188	$222
7.4%	$98	$108	$120	$135	$154
8.4%	$77	$84	$92	$102	$113

Current price: $103.83. Green = undervalued, Red = overvalued.

Fair Value

$129.61

Market Price

$103.83

Upside / Downside

+24.8%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Mohawk Industries, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 1.6% to 2.3% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 61, DPO 59, DIO 113). At a 6.4% WACC with mid-year discounting, the terminal value (71% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $129.61 per share, suggesting MHK is undervalued by 24.8% at the current price of $103.83.

FCFF Present Value Calculation

WACC

6.39%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	754	777	808	830	822	820	823	831	845	865	887
(−) Net Interest	50	51	53	55	54	54	54	55	56	57	58
(+) D&A	553	526	522	516	544	575	584	591	594	596	611
EBITDA	1,356	1,355	1,383	1,400	1,420	1,448	1,461	1,477	1,495	1,518	1,556

(−) Tax	277	285	296	305	302	301	302	305	310	317	325
(−) CapEx	543	560	581	597	592	590	592	598	608	623	638
(−) ΔWC	764	95	122	90	-31	-9	12	34	57	80	82
Free Cash Flow (FCFF)	-227	415	383	408	558	567	554	539	520	498	511

Terminal Value											13,120
WACC / Discount Rate	6.4%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	-220	378	328	329	422	403	371	339	307	277	7,060

Enterprise Value	9,993
Projection Period	2,933	29.3%
Terminal Value	7,060	70.7%

(−) Current Net Debt	1,906

Equity Value	8,087
(/) Outstanding Shares	62

Fair Price	$129.61

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
4.4%	$206	$244	$303	$404	$619
5.4%	$143	$162	$186	$221	$275
6.4%	$106	$117	$130	$146	$169
7.4%	$82	$88	$96	$105	$117
8.4%	$65	$69	$74	$80	$86

Current price: $103.83. Green = undervalued, Red = overvalued.

Fair Value

$185.26

Market Price

$103.83

Upside / Downside

+78.4%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Mohawk Industries, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 1.6% to -0.9% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 61, DPO 59, DIO 113). At a 6.4% WACC with mid-year discounting, the terminal value (91% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 11.4x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $185.28 per share, suggesting MHK is undervalued by 78.4% at the current price of $103.83.

FCFF Present Value Calculation

WACC

6.39%

3% – 20%

EV/EBITDA Exit Multiple

11.45x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	754	777	808	830	822	843
(−) Net Interest	50	51	53	55	54	55
(+) D&A	553	526	522	516	544	558
EBITDA	1,356	1,355	1,383	1,400	1,420	1,456

(−) Tax	277	285	296	305	302	—
(−) CapEx	543	560	581	597	592	—
(−) ΔWC	764	95	122	90	-31	—
Free Cash Flow (FCF)	-227	415	383	408	558	—

Peers' EBITDA Multiple						11.4x
Terminal Value						16,669
WACC / Discount Rate	6.39%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	-220	378	328	329	422	12,229

Enterprise Value	13,466
Projection Period	1,237	9.2%
Terminal Value	12,229	90.8%

(−) Current Net Debt	1,906
Equity Value	11,560
(÷) Outstanding Shares	62M
Fair Price	$185	+78.4%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	7.5x	9.5x	11.5x	13.5x	15.5x
4.4%	$131	$169	$206	$244	$281
5.4%	$124	$160	$195	$231	$267
6.4%	$117	$151	$185	$220	$254
7.4%	$110	$143	$176	$208	$241
8.4%	$104	$135	$167	$198	$229

Current price: $103.83. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$170.13

Market Price

$103.83

Upside / Downside

+63.9%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Mohawk Industries, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 1.6% to 2.3% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 61, DPO 59, DIO 113). At a 6.4% WACC with mid-year discounting, the terminal value (77% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 11.4x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $170.15 per share, suggesting MHK is undervalued by 63.9% at the current price of $103.83.

FCFF Present Value Calculation

WACC

6.39%

3% – 20%

EV/EBITDA Exit Multiple

11.45x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	754	777	808	830	822	820	823	831	845	865	887
(−) Net Interest	50	51	53	55	54	54	54	55	56	57	58
(+) D&A	553	526	522	516	544	575	584	591	594	596	611
EBITDA	1,356	1,355	1,383	1,400	1,420	1,448	1,461	1,477	1,495	1,518	1,556

(−) Tax	277	285	296	305	302	301	302	305	310	317	—
(−) CapEx	543	560	581	597	592	590	592	598	608	623	—
(−) ΔWC	764	95	122	90	-31	-9	12	34	57	80	—
Free Cash Flow (FCF)	-227	415	383	408	558	567	554	539	520	498	—

Peers' EBITDA Multiple											11.4x
Terminal Value											17,819
WACC / Discount Rate	6.39%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	-220	378	328	329	422	403	371	339	307	277	9,589

Enterprise Value	12,522
Projection Period	2,933	23.4%
Terminal Value	9,589	76.6%

(−) Current Net Debt	1,906
Equity Value	10,616
(÷) Outstanding Shares	62M
Fair Price	$170	+63.9%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	7.5x	9.5x	11.5x	13.5x	15.5x
4.4%	$143	$175	$208	$240	$273
5.4%	$129	$158	$188	$217	$247
6.4%	$116	$143	$170	$197	$224
7.4%	$105	$130	$154	$178	$203
8.4%	$95	$117	$139	$162	$184

Current price: $103.83. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$135.59

Market Price

$103.83

Upside / Downside

+30.6%

Verdict

Undervalued

Using the industry peer median P/E Multiples multiple (trailing + forward), Mohawk Industries, Inc. (MHK) has a fair value of $135.59 based on 7 comparable companies in the Furnishings, Fixtures & Appliances industry.

P/E Valuation — Furnishings, Fixtures & Appliances

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Mohawk Industries, Inc.MHK	6,479	17.5x	11.6x
Murphy USA Inc.MUSA	10,691	24.0x	18.2x
Allison Transmission Holdings, Inc.ALSN	10,323	16.9x	15.0x
Churchill Downs IncorporatedCHDN	6,142	16.6x	15.3x
Installed Building Products, Inc.IBP	5,926	22.7x	19.9x
CarMax, Inc.KMX	5,721	24.0x	12.3x
Floor & Decor Holdings, Inc.FND	5,592	26.9x	30.2x
H&R Block, Inc.HRB	4,685	8.4x	8.6x
Industry Median		22.7x	15.3x
(*) Profit after tax		370	558
Equity Value		8,380	8,541
(/) Outstanding shares		62	62
Fair Price		$134	$137

Selected Fair Value (avg of trailing + forward)

$135.59

+30.6%

Fair Value

$174.89

Market Price

$103.83

Upside / Downside

+68.4%

Verdict

Undervalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), Mohawk Industries, Inc. (MHK) has a fair value of $174.89 based on 7 comparable companies in the Furnishings, Fixtures & Appliances industry.

EV/EBITDA Valuation — Furnishings, Fixtures & Appliances

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Mohawk Industries, Inc.MHK	6,479	7.4x	7.4x
Murphy USA Inc.MUSA	10,691	13.6x	12.0x
Allison Transmission Holdings, Inc.ALSN	10,323	11.5x	10.7x
Churchill Downs IncorporatedCHDN	6,142	10.3x	11.1x
Installed Building Products, Inc.IBP	5,926	13.5x	13.6x
CarMax, Inc.KMX	5,721	10.9x	10.7x
Floor & Decor Holdings, Inc.FND	5,592	17.6x	18.6x
H&R Block, Inc.HRB	4,685	6.2x	6.5x
Industry Median		11.5x	11.1x
(*) EBITDA		1,139	1,137
= Enterprise Value		13,044	12,593
(-) Net Debt		1,906	1,906
Equity Value		11,139	10,687
(/) Outstanding shares		62	62
Fair Price		$179	$171

Selected Fair Value (avg of trailing + forward)

$174.89

+68.4%

Fair Value

$309.70

Market Price

$103.83

Upside / Downside

+198.3%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Mohawk Industries, Inc. (MHK) has a fair value of $309.70 based on 7 comparable companies in the Furnishings, Fixtures & Appliances industry.

EV/Revenue Valuation — Furnishings, Fixtures & Appliances

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Mohawk Industries, Inc.MHK	6,479	0.8x	0.8x
Murphy USA Inc.MUSA	10,691	0.7x	0.6x
Allison Transmission Holdings, Inc.ALSN	10,323	3.9x	3.6x
Churchill Downs IncorporatedCHDN	6,142	3.8x	4.0x
Installed Building Products, Inc.IBP	5,926	2.2x	2.3x
CarMax, Inc.KMX	5,721	0.3x	0.3x
Floor & Decor Holdings, Inc.FND	5,592	1.9x	2.0x
H&R Block, Inc.HRB	4,685	1.6x	1.7x
Industry Median		1.9x	2.0x
(*) Revenue		10,785	10,768
= Enterprise Value		20,662	21,800
(-) Net Debt		1,906	1,906
Equity Value		18,756	19,894
(/) Outstanding shares		62	62
Fair Price		$301	$319

Selected Fair Value (avg of trailing + forward)

$309.70

+198.3%

PEG Fair Value

Fair Value

$215.06

Market Price

$103.83

Upside / Downside

+107.1%

Verdict

Undervalued

Using the PEG framework with analyst consensus forward EPS growth of 25.0%, the company has a fair value of $215.06 based on NTM EPS (FY2026) of $8.60. The current PEG ratio is 0.44.

PEG Ratio

0.44Deep Value

01.02.03.0+

PEG = P/E ÷ Growth = 12.1 ÷ 27.6% = 0.44

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Fast GrowerPEG moderately applicable

Growth above 25% is capped — hypergrowth may not be sustainable long-term.

Fair Value Calculation

EPS Growth RateForward	27.6%
Adjusted Growth (clamped 8–25%)Clamped	25.0%
Fair P/E	25.0x
NTM EPS (FY2026)	$8.60
Fair Value	$215.06

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$5.93	—	—
FY2026E	$8.60	+45.1%	12
FY2027E	$9.88	+14.9%	12
FY2028E	$11.45	+15.9%	4
FY2029E	$15.73	+37.4%	3

4Y Forward EPS CAGR: 27.6%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$1.0B	$14.94	—
FY2022	$25.2M	$0.39	-97.4%
FY2023	$-439.5M	$-6.90	-1869.2%
FY2024	$517.7M	$8.14	—
FY2025	$369.9M	$5.93	-27.1%

4Y Historical EPS CAGR: -20.6%

Earnings Power Value

Fair Value

$115.47

Market Price

$103.83

Upside / Downside

+11.2%

Verdict

Undervalued

Using the Earnings Power Value framework with a WACC of 6.4% and normalized earnings of $582.4M, the company has a fair value of $115.47 per share. The EPV range is $87.72 – $160.24 based on WACC sensitivity (4.9% – 7.9%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	582	582	582
(/) WACC	7.9%	6.4%	4.9%
Enterprise Value	7,379	9,111	11,904
(-) Net debt	1,906	1,906	1,906
Equity Value	5,473	7,205	9,999
(/) Outstanding shares	62	62	62
Fair Price	$87.72	$115.47	$160.24

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

Mohawk Industries, Inc. (MHK) Valuation Summary

Updated May 10, 2026 07:32

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$76.98 – $820.01	$162.16	+56.2%
Growth Exit 10Y	$64.80 – $618.74	$129.61	+24.8%
EBITDA Exit 5Y	$104.23 – $281.42	$185.28	+78.4%
EBITDA Exit 10Y	$94.77 – $272.59	$170.15	+63.9%
▸ Trading Multiples
P/E	$98.20 – $142.34	$135.59	+30.6%
EV/EBITDA	$158.07 – $218.62	$174.89	+68.4%
EV/Revenue	$93.53 – $622.28	$309.70	+198.3%
▸ PEG
PEG Fair Value	$215.06 – $215.06	$215.06	+107.1%
▸ Earnings Power Value
Earnings Power Value	$87.72 – $160.24	$115.47	+11.2%
▸ Dividend Discount
Dividend Discount	—	N/A	—

Valuation History

DCF Analysis

Fair Value

$162.16

Market Price

$103.83

Upside / Downside

+56.2%

Verdict

Undervalued

FCFF Present Value Calculation

WACC

6.39%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	754	777	808	830	822	843
(−) Net Interest	50	51	53	55	54	55
(+) D&A	553	526	522	516	544	558
EBITDA	1,356	1,355	1,383	1,400	1,420	1,456

(−) Tax	277	285	296	305	302	309
(−) CapEx	543	560	581	597	592	607
(−) ΔWC	764	95	122	90	-31	-32
Free Cash Flow (FCFF)	-227	415	383	408	558	572

Terminal Value						14,705
WACC / Discount Rate	6.4%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	-220	378	328	329	422	10,787

Enterprise Value	12,024
Projection Period	1,237	10.3%
Terminal Value	10,787	89.7%

(−) Current Net Debt	1,906

Equity Value	10,119
(/) Outstanding Shares	62

Fair Price	$162.16

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
4.4%	$246	$300	$382	$522	$820
5.4%	$171	$198	$234	$285	$363
6.4%	$127	$142	$162	$188	$222
7.4%	$98	$108	$120	$135	$154
8.4%	$77	$84	$92	$102	$113

Current price: $103.83. Green = undervalued, Red = overvalued.

Fair Value

$129.61

Market Price

$103.83

Upside / Downside

+24.8%

Verdict

Undervalued

FCFF Present Value Calculation

WACC

6.39%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	754	777	808	830	822	820	823	831	845	865	887
(−) Net Interest	50	51	53	55	54	54	54	55	56	57	58
(+) D&A	553	526	522	516	544	575	584	591	594	596	611
EBITDA	1,356	1,355	1,383	1,400	1,420	1,448	1,461	1,477	1,495	1,518	1,556

(−) Tax	277	285	296	305	302	301	302	305	310	317	325
(−) CapEx	543	560	581	597	592	590	592	598	608	623	638
(−) ΔWC	764	95	122	90	-31	-9	12	34	57	80	82
Free Cash Flow (FCFF)	-227	415	383	408	558	567	554	539	520	498	511

Terminal Value											13,120
WACC / Discount Rate	6.4%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	-220	378	328	329	422	403	371	339	307	277	7,060

Enterprise Value	9,993
Projection Period	2,933	29.3%
Terminal Value	7,060	70.7%

(−) Current Net Debt	1,906

Equity Value	8,087
(/) Outstanding Shares	62

Fair Price	$129.61

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
4.4%	$206	$244	$303	$404	$619
5.4%	$143	$162	$186	$221	$275
6.4%	$106	$117	$130	$146	$169
7.4%	$82	$88	$96	$105	$117
8.4%	$65	$69	$74	$80	$86

Current price: $103.83. Green = undervalued, Red = overvalued.

Fair Value

$185.26

Market Price

$103.83

Upside / Downside

+78.4%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Mohawk Industries, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 1.6% to -0.9% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 61, DPO 59, DIO 113). At a 6.4% WACC with mid-year discounting, the terminal value (91% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 11.4x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $185.28 per share, suggesting MHK is undervalued by 78.4% at the current price of $103.83.

FCFF Present Value Calculation

WACC

6.39%

3% – 20%

EV/EBITDA Exit Multiple

11.45x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	754	777	808	830	822	843
(−) Net Interest	50	51	53	55	54	55
(+) D&A	553	526	522	516	544	558
EBITDA	1,356	1,355	1,383	1,400	1,420	1,456

(−) Tax	277	285	296	305	302	—
(−) CapEx	543	560	581	597	592	—
(−) ΔWC	764	95	122	90	-31	—
Free Cash Flow (FCF)	-227	415	383	408	558	—

Peers' EBITDA Multiple						11.4x
Terminal Value						16,669
WACC / Discount Rate	6.39%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	-220	378	328	329	422	12,229

Enterprise Value	13,466
Projection Period	1,237	9.2%
Terminal Value	12,229	90.8%

(−) Current Net Debt	1,906
Equity Value	11,560
(÷) Outstanding Shares	62M
Fair Price	$185	+78.4%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	7.5x	9.5x	11.5x	13.5x	15.5x
4.4%	$131	$169	$206	$244	$281
5.4%	$124	$160	$195	$231	$267
6.4%	$117	$151	$185	$220	$254
7.4%	$110	$143	$176	$208	$241
8.4%	$104	$135	$167	$198	$229

Current price: $103.83. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$170.13

Market Price

$103.83

Upside / Downside

+63.9%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Mohawk Industries, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 1.6% to 2.3% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 61, DPO 59, DIO 113). At a 6.4% WACC with mid-year discounting, the terminal value (77% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 11.4x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $170.15 per share, suggesting MHK is undervalued by 63.9% at the current price of $103.83.

FCFF Present Value Calculation

WACC

6.39%

3% – 20%

EV/EBITDA Exit Multiple

11.45x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	754	777	808	830	822	820	823	831	845	865	887
(−) Net Interest	50	51	53	55	54	54	54	55	56	57	58
(+) D&A	553	526	522	516	544	575	584	591	594	596	611
EBITDA	1,356	1,355	1,383	1,400	1,420	1,448	1,461	1,477	1,495	1,518	1,556

(−) Tax	277	285	296	305	302	301	302	305	310	317	—
(−) CapEx	543	560	581	597	592	590	592	598	608	623	—
(−) ΔWC	764	95	122	90	-31	-9	12	34	57	80	—
Free Cash Flow (FCF)	-227	415	383	408	558	567	554	539	520	498	—

Peers' EBITDA Multiple											11.4x
Terminal Value											17,819
WACC / Discount Rate	6.39%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	-220	378	328	329	422	403	371	339	307	277	9,589

Enterprise Value	12,522
Projection Period	2,933	23.4%
Terminal Value	9,589	76.6%

(−) Current Net Debt	1,906
Equity Value	10,616
(÷) Outstanding Shares	62M
Fair Price	$170	+63.9%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	7.5x	9.5x	11.5x	13.5x	15.5x
4.4%	$143	$175	$208	$240	$273
5.4%	$129	$158	$188	$217	$247
6.4%	$116	$143	$170	$197	$224
7.4%	$105	$130	$154	$178	$203
8.4%	$95	$117	$139	$162	$184

Current price: $103.83. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$135.59

Market Price

$103.83

Upside / Downside

+30.6%

Verdict

Undervalued

P/E Valuation — Furnishings, Fixtures & Appliances

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Mohawk Industries, Inc.MHK	6,479	17.5x	11.6x
Murphy USA Inc.MUSA	10,691	24.0x	18.2x
Allison Transmission Holdings, Inc.ALSN	10,323	16.9x	15.0x
Churchill Downs IncorporatedCHDN	6,142	16.6x	15.3x
Installed Building Products, Inc.IBP	5,926	22.7x	19.9x
CarMax, Inc.KMX	5,721	24.0x	12.3x
Floor & Decor Holdings, Inc.FND	5,592	26.9x	30.2x
H&R Block, Inc.HRB	4,685	8.4x	8.6x
Industry Median		22.7x	15.3x
(*) Profit after tax		370	558
Equity Value		8,380	8,541
(/) Outstanding shares		62	62
Fair Price		$134	$137

Selected Fair Value (avg of trailing + forward)

$135.59

+30.6%

Fair Value

$174.89

Market Price

$103.83

Upside / Downside

+68.4%

Verdict

Undervalued

EV/EBITDA Valuation — Furnishings, Fixtures & Appliances

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Mohawk Industries, Inc.MHK	6,479	7.4x	7.4x
Murphy USA Inc.MUSA	10,691	13.6x	12.0x
Allison Transmission Holdings, Inc.ALSN	10,323	11.5x	10.7x
Churchill Downs IncorporatedCHDN	6,142	10.3x	11.1x
Installed Building Products, Inc.IBP	5,926	13.5x	13.6x
CarMax, Inc.KMX	5,721	10.9x	10.7x
Floor & Decor Holdings, Inc.FND	5,592	17.6x	18.6x
H&R Block, Inc.HRB	4,685	6.2x	6.5x
Industry Median		11.5x	11.1x
(*) EBITDA		1,139	1,137
= Enterprise Value		13,044	12,593
(-) Net Debt		1,906	1,906
Equity Value		11,139	10,687
(/) Outstanding shares		62	62
Fair Price		$179	$171

Selected Fair Value (avg of trailing + forward)

$174.89

+68.4%

Fair Value

$309.70

Market Price

$103.83

Upside / Downside

+198.3%

Verdict

Undervalued

EV/Revenue Valuation — Furnishings, Fixtures & Appliances

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Mohawk Industries, Inc.MHK	6,479	0.8x	0.8x
Murphy USA Inc.MUSA	10,691	0.7x	0.6x
Allison Transmission Holdings, Inc.ALSN	10,323	3.9x	3.6x
Churchill Downs IncorporatedCHDN	6,142	3.8x	4.0x
Installed Building Products, Inc.IBP	5,926	2.2x	2.3x
CarMax, Inc.KMX	5,721	0.3x	0.3x
Floor & Decor Holdings, Inc.FND	5,592	1.9x	2.0x
H&R Block, Inc.HRB	4,685	1.6x	1.7x
Industry Median		1.9x	2.0x
(*) Revenue		10,785	10,768
= Enterprise Value		20,662	21,800
(-) Net Debt		1,906	1,906
Equity Value		18,756	19,894
(/) Outstanding shares		62	62
Fair Price		$301	$319

Selected Fair Value (avg of trailing + forward)

$309.70

+198.3%

PEG Fair Value

Fair Value

$215.06

Market Price

$103.83

Upside / Downside

+107.1%

Verdict

Undervalued

Using the PEG framework with analyst consensus forward EPS growth of 25.0%, the company has a fair value of $215.06 based on NTM EPS (FY2026) of $8.60. The current PEG ratio is 0.44.

PEG Ratio

0.44Deep Value

01.02.03.0+

PEG = P/E ÷ Growth = 12.1 ÷ 27.6% = 0.44

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Fast GrowerPEG moderately applicable

Growth above 25% is capped — hypergrowth may not be sustainable long-term.

Fair Value Calculation

EPS Growth RateForward	27.6%
Adjusted Growth (clamped 8–25%)Clamped	25.0%
Fair P/E	25.0x
NTM EPS (FY2026)	$8.60
Fair Value	$215.06

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$5.93	—	—
FY2026E	$8.60	+45.1%	12
FY2027E	$9.88	+14.9%	12
FY2028E	$11.45	+15.9%	4
FY2029E	$15.73	+37.4%	3

4Y Forward EPS CAGR: 27.6%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$1.0B	$14.94	—
FY2022	$25.2M	$0.39	-97.4%
FY2023	$-439.5M	$-6.90	-1869.2%
FY2024	$517.7M	$8.14	—
FY2025	$369.9M	$5.93	-27.1%

4Y Historical EPS CAGR: -20.6%

Earnings Power Value

Fair Value

$115.47

Market Price

$103.83

Upside / Downside

+11.2%

Verdict

Undervalued

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	582	582	582
(/) WACC	7.9%	6.4%	4.9%
Enterprise Value	7,379	9,111	11,904
(-) Net debt	1,906	1,906	1,906
Equity Value	5,473	7,205	9,999
(/) Outstanding shares	62	62	62
Fair Price	$87.72	$115.47	$160.24