Intrinsic value of Kimberly-Clark - KMB

Previous Close

$118.12

  Intrinsic Value

$10.71

stock screener

  Rating & Target

str. sell

-91%

  Value-price divergence*

-3%

Previous close

$118.12

 
Intrinsic value

$10.71

 
Up/down potential

-91%

 
Rating

str. sell

 
Value-price divergence*

-3%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of KMB stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 41.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -2.09
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  18,202
  18,566
  18,993
  19,481
  20,029
  20,636
  21,303
  22,028
  22,813
  23,660
  24,568
  25,539
  26,575
  27,679
  28,852
  30,097
  31,415
  32,812
  34,288
  35,848
  37,495
  39,233
  41,066
  42,998
  45,034
  47,177
  49,435
  51,811
  54,311
  56,941
  59,708
Variable operating expenses, $m
 
  16,948
  17,334
  17,776
  18,272
  18,821
  19,424
  20,081
  20,791
  21,557
  22,378
  23,109
  24,047
  25,046
  26,107
  27,233
  28,427
  29,690
  31,026
  32,438
  33,928
  35,501
  37,159
  38,908
  40,749
  42,689
  44,732
  46,882
  49,144
  51,524
  54,028
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  14,885
  16,948
  17,334
  17,776
  18,272
  18,821
  19,424
  20,081
  20,791
  21,557
  22,378
  23,109
  24,047
  25,046
  26,107
  27,233
  28,427
  29,690
  31,026
  32,438
  33,928
  35,501
  37,159
  38,908
  40,749
  42,689
  44,732
  46,882
  49,144
  51,524
  54,028
Operating income, $m
  3,317
  1,618
  1,659
  1,705
  1,757
  1,815
  1,879
  1,948
  2,022
  2,103
  2,189
  2,430
  2,528
  2,633
  2,745
  2,863
  2,989
  3,121
  3,262
  3,410
  3,567
  3,732
  3,907
  4,090
  4,284
  4,488
  4,703
  4,929
  5,167
  5,417
  5,680
EBITDA, $m
  4,022
  2,365
  2,420
  2,482
  2,552
  2,629
  2,714
  2,807
  2,907
  3,014
  3,130
  3,254
  3,386
  3,527
  3,676
  3,835
  4,003
  4,180
  4,369
  4,567
  4,777
  4,999
  5,232
  5,478
  5,738
  6,011
  6,298
  6,601
  6,920
  7,255
  7,607
Interest expense (income), $m
  315
  275
  225
  237
  250
  265
  282
  301
  321
  342
  366
  391
  418
  447
  477
  510
  544
  581
  620
  661
  704
  749
  798
  848
  902
  958
  1,018
  1,080
  1,146
  1,216
  1,289
Earnings before tax, $m
  3,009
  1,343
  1,434
  1,469
  1,507
  1,550
  1,596
  1,647
  1,702
  1,760
  1,823
  2,038
  2,110
  2,186
  2,267
  2,353
  2,444
  2,540
  2,642
  2,750
  2,863
  2,983
  3,109
  3,242
  3,382
  3,530
  3,685
  3,848
  4,020
  4,201
  4,391
Tax expense, $m
  922
  363
  387
  397
  407
  418
  431
  445
  459
  475
  492
  550
  570
  590
  612
  635
  660
  686
  713
  742
  773
  805
  839
  875
  913
  953
  995
  1,039
  1,085
  1,134
  1,186
Net income, $m
  2,166
  981
  1,047
  1,072
  1,100
  1,131
  1,165
  1,202
  1,242
  1,285
  1,331
  1,488
  1,540
  1,596
  1,655
  1,718
  1,784
  1,855
  1,929
  2,007
  2,090
  2,177
  2,270
  2,367
  2,469
  2,577
  2,690
  2,809
  2,935
  3,067
  3,206

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  923
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  14,602
  13,949
  14,270
  14,636
  15,048
  15,504
  16,005
  16,550
  17,140
  17,776
  18,458
  19,188
  19,967
  20,796
  21,677
  22,612
  23,603
  24,652
  25,761
  26,933
  28,171
  29,476
  30,853
  32,305
  33,834
  35,445
  37,141
  38,926
  40,805
  42,781
  44,859
Adjusted assets (=assets-cash), $m
  13,679
  13,949
  14,270
  14,636
  15,048
  15,504
  16,005
  16,550
  17,140
  17,776
  18,458
  19,188
  19,967
  20,796
  21,677
  22,612
  23,603
  24,652
  25,761
  26,933
  28,171
  29,476
  30,853
  32,305
  33,834
  35,445
  37,141
  38,926
  40,805
  42,781
  44,859
Revenue / Adjusted assets
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
  1.331
Average production assets, $m
  7,225
  7,371
  7,540
  7,734
  7,952
  8,193
  8,457
  8,745
  9,057
  9,393
  9,753
  10,139
  10,550
  10,989
  11,454
  11,948
  12,472
  13,026
  13,612
  14,232
  14,886
  15,576
  16,303
  17,070
  17,878
  18,729
  19,626
  20,569
  21,561
  22,606
  23,704
Working capital, $m
  -731
  -538
  -551
  -565
  -581
  -598
  -618
  -639
  -662
  -686
  -712
  -741
  -771
  -803
  -837
  -873
  -911
  -952
  -994
  -1,040
  -1,087
  -1,138
  -1,191
  -1,247
  -1,306
  -1,368
  -1,434
  -1,503
  -1,575
  -1,651
  -1,732
Total debt, $m
  7,630
  5,480
  5,769
  6,099
  6,469
  6,880
  7,331
  7,821
  8,352
  8,924
  9,538
  10,195
  10,896
  11,642
  12,435
  13,277
  14,169
  15,113
  16,111
  17,166
  18,280
  19,455
  20,694
  22,001
  23,377
  24,827
  26,353
  27,959
  29,650
  31,429
  33,299
Total liabilities, $m
  14,704
  12,554
  12,843
  13,173
  13,543
  13,954
  14,405
  14,895
  15,426
  15,998
  16,612
  17,269
  17,970
  18,716
  19,509
  20,351
  21,243
  22,187
  23,185
  24,240
  25,354
  26,529
  27,768
  29,075
  30,451
  31,901
  33,427
  35,033
  36,724
  38,503
  40,373
Total equity, $m
  -102
  1,395
  1,427
  1,464
  1,505
  1,550
  1,601
  1,655
  1,714
  1,778
  1,846
  1,919
  1,997
  2,080
  2,168
  2,261
  2,360
  2,465
  2,576
  2,693
  2,817
  2,948
  3,085
  3,231
  3,383
  3,545
  3,714
  3,893
  4,080
  4,278
  4,486
Total liabilities and equity, $m
  14,602
  13,949
  14,270
  14,637
  15,048
  15,504
  16,006
  16,550
  17,140
  17,776
  18,458
  19,188
  19,967
  20,796
  21,677
  22,612
  23,603
  24,652
  25,761
  26,933
  28,171
  29,477
  30,853
  32,306
  33,834
  35,446
  37,141
  38,926
  40,804
  42,781
  44,859
Debt-to-equity ratio
  -74.804
  3.930
  4.040
  4.170
  4.300
  4.440
  4.580
  4.730
  4.870
  5.020
  5.170
  5.310
  5.460
  5.600
  5.740
  5.870
  6.000
  6.130
  6.250
  6.370
  6.490
  6.600
  6.710
  6.810
  6.910
  7.000
  7.100
  7.180
  7.270
  7.350
  7.420
Adjusted equity ratio
  -0.075
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,166
  981
  1,047
  1,072
  1,100
  1,131
  1,165
  1,202
  1,242
  1,285
  1,331
  1,488
  1,540
  1,596
  1,655
  1,718
  1,784
  1,855
  1,929
  2,007
  2,090
  2,177
  2,270
  2,367
  2,469
  2,577
  2,690
  2,809
  2,935
  3,067
  3,206
Depreciation, amort., depletion, $m
  705
  747
  761
  777
  794
  814
  836
  859
  884
  912
  941
  824
  858
  893
  931
  971
  1,014
  1,059
  1,107
  1,157
  1,210
  1,266
  1,325
  1,388
  1,454
  1,523
  1,596
  1,672
  1,753
  1,838
  1,927
Funds from operations, $m
  3,439
  1,728
  1,808
  1,849
  1,895
  1,946
  2,001
  2,061
  2,127
  2,197
  2,272
  2,312
  2,398
  2,489
  2,586
  2,689
  2,798
  2,914
  3,036
  3,164
  3,300
  3,444
  3,595
  3,754
  3,922
  4,099
  4,286
  4,482
  4,688
  4,905
  5,133
Change in working capital, $m
  207
  -11
  -12
  -14
  -16
  -18
  -19
  -21
  -23
  -25
  -26
  -28
  -30
  -32
  -34
  -36
  -38
  -40
  -43
  -45
  -48
  -50
  -53
  -56
  -59
  -62
  -65
  -69
  -73
  -76
  -80
Cash from operations, $m
  3,232
  1,738
  1,820
  1,863
  1,911
  1,963
  2,020
  2,082
  2,149
  2,221
  2,298
  2,341
  2,428
  2,521
  2,620
  2,725
  2,837
  2,954
  3,078
  3,210
  3,348
  3,494
  3,648
  3,810
  3,981
  4,161
  4,351
  4,550
  4,760
  4,981
  5,213
Maintenance CAPEX, $m
  0
  -587
  -599
  -613
  -629
  -646
  -666
  -688
  -711
  -736
  -764
  -793
  -824
  -858
  -893
  -931
  -971
  -1,014
  -1,059
  -1,107
  -1,157
  -1,210
  -1,266
  -1,325
  -1,388
  -1,454
  -1,523
  -1,596
  -1,672
  -1,753
  -1,838
New CAPEX, $m
  -771
  -146
  -170
  -194
  -218
  -241
  -265
  -288
  -312
  -336
  -360
  -386
  -411
  -438
  -466
  -494
  -524
  -554
  -586
  -619
  -654
  -690
  -728
  -767
  -808
  -851
  -896
  -943
  -993
  -1,044
  -1,098
Cash from investing activities, $m
  -732
  -733
  -769
  -807
  -847
  -887
  -931
  -976
  -1,023
  -1,072
  -1,124
  -1,179
  -1,235
  -1,296
  -1,359
  -1,425
  -1,495
  -1,568
  -1,645
  -1,726
  -1,811
  -1,900
  -1,994
  -2,092
  -2,196
  -2,305
  -2,419
  -2,539
  -2,665
  -2,797
  -2,936
Free cash flow, $m
  2,500
  1,005
  1,052
  1,056
  1,064
  1,076
  1,090
  1,107
  1,127
  1,149
  1,174
  1,162
  1,192
  1,226
  1,261
  1,300
  1,341
  1,386
  1,433
  1,484
  1,537
  1,594
  1,654
  1,718
  1,786
  1,857
  1,932
  2,012
  2,095
  2,184
  2,277
Issuance/(repayment) of debt, $m
  -213
  -1,227
  289
  330
  371
  411
  451
  491
  531
  572
  614
  657
  701
  746
  793
  842
  892
  944
  998
  1,055
  1,114
  1,175
  1,239
  1,306
  1,376
  1,450
  1,526
  1,607
  1,691
  1,779
  1,871
Issuance/(repurchase) of shares, $m
  -632
  516
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -874
  -711
  289
  330
  371
  411
  451
  491
  531
  572
  614
  657
  701
  746
  793
  842
  892
  944
  998
  1,055
  1,114
  1,175
  1,239
  1,306
  1,376
  1,450
  1,526
  1,607
  1,691
  1,779
  1,871
Total cash flow (excl. dividends), $m
  1,615
  295
  1,340
  1,386
  1,435
  1,486
  1,540
  1,597
  1,658
  1,721
  1,788
  1,819
  1,893
  1,972
  2,055
  2,142
  2,233
  2,330
  2,431
  2,538
  2,651
  2,769
  2,894
  3,024
  3,162
  3,307
  3,458
  3,618
  3,786
  3,962
  4,148
Retained Cash Flow (-), $m
  -72
  -1,497
  -32
  -37
  -41
  -46
  -50
  -55
  -59
  -64
  -68
  -73
  -78
  -83
  -88
  -94
  -99
  -105
  -111
  -117
  -124
  -131
  -138
  -145
  -153
  -161
  -170
  -179
  -188
  -198
  -208
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  -1,202
  1,308
  1,350
  1,394
  1,441
  1,490
  1,543
  1,599
  1,658
  1,720
  1,746
  1,815
  1,889
  1,966
  2,048
  2,134
  2,225
  2,321
  2,421
  2,527
  2,639
  2,756
  2,879
  3,009
  3,145
  3,289
  3,440
  3,598
  3,765
  3,940
Discount rate, %
 
  9.20
  9.66
  10.14
  10.65
  11.18
  11.74
  12.33
  12.95
  13.59
  14.27
  14.99
  15.74
  16.52
  17.35
  18.22
  19.13
  20.08
  21.09
  22.14
  23.25
  24.41
  25.63
  26.91
  28.26
  29.67
  31.15
  32.71
  34.35
  36.07
  37.87
PV of cash for distribution, $m
 
  -1,101
  1,088
  1,010
  930
  848
  766
  684
  604
  526
  453
  376
  314
  259
  209
  166
  130
  99
  74
  54
  39
  27
  18
  12
  8
  5
  3
  2
  1
  0
  0
Current shareholders' claim on cash, %
  100
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0
  50.0

Kimberly-Clark Corporation is engaged in the manufacturing and marketing of a range of products made from natural or synthetic fibers. The Company's segments include Personal Care, Consumer Tissue, K-C Professional and Corporate & Other. The Company's Personal Care segment offers various solutions and products, such as disposable diapers, training and youth pants, swimpants, baby wipes, feminine and incontinence care products, and other related products. The Company's Consumer Tissue segment offers products, such as facial and bathroom tissue, paper towels, napkins and related products. The Company's K-C Professional segment offers solutions and supporting products, such as wipers, tissue, towels, apparel, soaps and sanitizers. The Company's business outside North America includes Developing and Emerging Markets (D&E) and Developed Markets. It sells its products to supermarkets, mass merchandisers, drugstores, warehouse clubs and other retail outlets.

FINANCIAL RATIOS  of  Kimberly-Clark (KMB)

Valuation Ratios
P/E Ratio 19.4
Price to Sales 2.3
Price to Book -413
Price to Tangible Book
Price to Cash Flow 13
Price to Free Cash Flow 17.1
Growth Rates
Sales Growth Rate -2.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -27%
Cap. Spend. - 3 Yr. Gr. Rate -4.1%
Financial Strength
Quick Ratio 1
Current Ratio 0.1
LT Debt to Equity -6369.6%
Total Debt to Equity -7480.4%
Interest Coverage 11
Management Effectiveness
Return On Assets 16.2%
Ret/ On Assets - 3 Yr. Avg. 11.4%
Return On Total Capital 28.5%
Ret/ On T. Cap. - 3 Yr. Avg. 19.3%
Return On Equity -1569.6%
Return On Equity - 3 Yr. Avg. -383.3%
Asset Turnover 1.2
Profitability Ratios
Gross Margin 36.5%
Gross Margin - 3 Yr. Avg. 35.4%
EBITDA Margin 22.1%
EBITDA Margin - 3 Yr. Avg. 17.4%
Operating Margin 18.2%
Oper. Margin - 3 Yr. Avg. 13.2%
Pre-Tax Margin 16.5%
Pre-Tax Margin - 3 Yr. Avg. 11.7%
Net Profit Margin 11.9%
Net Profit Margin - 3 Yr. Avg. 8.4%
Effective Tax Rate 30.6%
Eff/ Tax Rate - 3 Yr. Avg. 33.3%
Payout Ratio 60.5%

KMB stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the KMB stock intrinsic value calculation we used $18202 million for the last fiscal year's total revenue generated by Kimberly-Clark. The default revenue input number comes from 2016 income statement of Kimberly-Clark. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our KMB stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 9.2%, whose default value for KMB is calculated based on our internal credit rating of Kimberly-Clark, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Kimberly-Clark.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of KMB stock the variable cost ratio is equal to 91.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for KMB stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.1% for Kimberly-Clark.

Corporate tax rate of 27% is the nominal tax rate for Kimberly-Clark. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the KMB stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for KMB are equal to 39.7%.

Life of production assets of 12.3 years is the average useful life of capital assets used in Kimberly-Clark operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for KMB is equal to -2.9%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $-102 million for Kimberly-Clark - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 354.839 million for Kimberly-Clark is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Kimberly-Clark at the current share price and the inputted number of shares is $41.9 billion.

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COMPANY NEWS

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▶ Investing for kids can have a huge payoff   [07:12PM  CNBC Videos]
▶ This CIO is leading a transformation at Irving-based Kimberly-Clark   [Aug-25-17 05:15PM  American City Business Journals]
▶ How Safe Is Kimberly-Clark's Dividend?   [Aug-19-17 10:30AM  Motley Fool]
▶ Kimberly-Clarks Dividend Growth   [Aug-16-17 09:32AM  Market Realist]
▶ What Drove Cloroxs Strong Sales in Fiscal 4Q17?   [Aug-07-17 02:35PM  Market Realist]
▶ Cramer: Investing for kids can have a huge payoff   [Aug-04-17 07:45PM  CNBC Videos]
▶ Kimberly-Clark Declares Quarterly Dividend   [Aug-01-17 04:15PM  PR Newswire]
▶ How Procter & Gambles Segment Sales Performed in Fiscal Q4   [Jul-31-17 07:40AM  Market Realist]
▶ Procter & Gamble Co.s Rebound Gains Steam   [Jul-29-17 04:16PM  Motley Fool]
▶ Kimberly-Clarks Valuation and Growth Outlook   [Jul-28-17 07:36AM  Market Realist]
▶ Why Kimberly-Clarks Margins Fell in 2Q17   [09:08AM  Market Realist]
▶ Kimberly-Clark misses Street 2Q forecasts   [Jul-25-17 04:56PM  Associated Press]
▶ Will Proctor & Gamble (PG) Stock Get Lost In Transition?   [Jul-21-17 06:30AM  InvestorPlace]
▶ Kimberly-Clark: Analysts Recommendations and Target Price   [Jul-19-17 10:37AM  Market Realist]
▶ 3 Great Stocks for Low-Risk Investors   [Jul-18-17 06:06PM  Motley Fool]
▶ Kimberly-Clarks 2Q17 EPS Is Expected to Fall   [01:35PM  Market Realist]
▶ Why Kimberly-Clark Stock Is on a Downtrend   [12:02PM  Market Realist]
▶ What Can An Activist Do For P&G?   [01:55PM  Barrons.com]
▶ Procter & Gamble: No breakup?   [12:16PM  Barrons.com]
▶ Kimberly-Clark Is Looking Paper-Thin   [12:43PM  TheStreet.com]
▶ Better Buy: Kimberly-Clark Corporation vs. Altria   [Jun-30-17 09:33AM  Motley Fool]
Financial statements of KMB
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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