MHK Valuation

Mohawk Industries Inc

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120.000

-0.9(-0.744%)1D

Overview
Forecast
Valuation
Earnings

MHK Relative Valuation

MHK's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, MHK is overvalued; if below, it's undervalued.

Historical Valuation

Mohawk Industries Inc (MHK) is now in the Fair zone, suggesting that its current forward PE ratio of 12.58 is considered Fairly compared with the five-year average of 11.41. The fair price of Mohawk Industries Inc (MHK) is between 114.32 to 140.65 according to relative valuation methord.

Relative Value

Fair Zone

114.32-140.65

Current Price：120.90

Fair

12.07

Trailing

Forward

6.79

EV/EBITDA

Mohawk Industries Inc. (MHK) has a current EV/EBITDA of 6.79. The 5-year average EV/EBITDA is 6.77. The thresholds are as follows: Strongly Undervalued below 5.23, Undervalued between 5.23 and 6.00, Fairly Valued between 7.54 and 6.00, Overvalued between 7.54 and 8.30, and Strongly Overvalued above 8.30. The current Forward EV/EBITDA of 6.79 falls within the Historic Trend Line -Fairly Valued range.

11.76

EV/EBIT

Mohawk Industries Inc. (MHK) has a current EV/EBIT of 11.76. The 5-year average EV/EBIT is 10.94. The thresholds are as follows: Strongly Undervalued below 8.55, Undervalued between 8.55 and 9.74, Fairly Valued between 12.13 and 9.74, Overvalued between 12.13 and 13.32, and Strongly Overvalued above 13.32. The current Forward EV/EBIT of 11.76 falls within the Historic Trend Line -Fairly Valued range.

0.69

Mohawk Industries Inc. (MHK) has a current PS of 0.69. The 5-year average PS is 0.77. The thresholds are as follows: Strongly Undervalued below 0.32, Undervalued between 0.32 and 0.55, Fairly Valued between 1.00 and 0.55, Overvalued between 1.00 and 1.22, and Strongly Overvalued above 1.22. The current Forward PS of 0.69 falls within the Historic Trend Line -Fairly Valued range.

5.83

P/OCF

Mohawk Industries Inc. (MHK) has a current P/OCF of 5.83. The 5-year average P/OCF is 6.48. The thresholds are as follows: Strongly Undervalued below 3.13, Undervalued between 3.13 and 4.81, Fairly Valued between 8.16 and 4.81, Overvalued between 8.16 and 9.83, and Strongly Overvalued above 9.83. The current Forward P/OCF of 5.83 falls within the Historic Trend Line -Fairly Valued range.

10.08

P/FCF

Mohawk Industries Inc. (MHK) has a current P/FCF of 10.08. The 5-year average P/FCF is 13.84. The thresholds are as follows: Strongly Undervalued below 2.33, Undervalued between 2.33 and 8.08, Fairly Valued between 19.59 and 8.08, Overvalued between 19.59 and 25.35, and Strongly Overvalued above 25.35. The current Forward P/FCF of 10.08 falls within the Historic Trend Line -Fairly Valued range.

Mohawk Industries Inc (MHK) has a current Price-to-Book (P/B) ratio of 0.96. Compared to its 3-year average P/B ratio of 0.91 , the current P/B ratio is approximately 6.11% higher. Relative to its 5-year average P/B ratio of 1.05, the current P/B ratio is about -8.23% higher. Mohawk Industries Inc (MHK) has a Forward Free Cash Flow (FCF) yield of approximately 6.86%. Compared to its 3-year average FCF yield of 6.36%, the current FCF yield is approximately 7.76% lower. Relative to its 5-year average FCF yield of 7.81% , the current FCF yield is about -12.24% lower.

0.91

P/B

Median3y

0.91

Median5y

1.05

0.00

FCF Yield

Median3y

6.36

Median5y

7.81

Competitors Valuation Multiple

The average P/S ratio for MHK's competitors is 2.28, providing a benchmark for relative valuation. Mohawk Industries Inc Corp (MHK) exhibits a P/S ratio of 0.69, which is -69.76% above the industry average. Given its robust revenue growth of 0.03%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

MHK.N

Mohawk Industries Inc

Simpson Manufacturing Co Inc

Fortune Brands Innovations Inc

Performance Decomposition

Market capitalization of MHK decreased by 25.50% over the past 1 year. The primary factor behind the change was an increase in Revenue Growth from 2.80B to 2.80B.

The secondary factor is the Margin Expansion, contributed -6.94%to the performance.

Overall, the performance of MHK in the past 1 year is driven by Revenue Growth. Which is more sustainable.

0.03%

2.80B → 2.80B

Revenue Growth

-6.94%

5.62 → 5.23

Margin Expansion

-18.59%

19.72 → 16.05

P/E Change

-25.50%