Intrinsic value of Whirlpool - WHR

Previous Close

$174.11

  Intrinsic Value

$205.68

stock screener

  Rating & Target

hold

+18%

  Value-price divergence*

-44%

Previous close

$174.11

 
Intrinsic value

$205.68

 
Up/down potential

+18%

 
Rating

hold

 
Value-price divergence*

-44%

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

We calculate the intrinsic value of WHR 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 12.9

 

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, %
  -0.83
  3.70
  3.83
  3.95
  4.05
  4.15
  4.23
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.63
  4.67
  4.70
  4.73
  4.76
  4.78
  4.80
  4.82
  4.84
  4.86
  4.87
  4.88
  4.90
  4.91
  4.92
  4.92
  4.93
  4.94
Revenue, $m
  20,718
  21,485
  22,307
  23,188
  24,128
  25,128
  26,192
  27,320
  28,516
  29,783
  31,122
  32,537
  34,031
  35,608
  37,270
  39,023
  40,870
  42,815
  44,863
  47,018
  49,286
  51,673
  54,183
  56,823
  59,598
  62,517
  65,584
  68,808
  72,197
  75,757
  79,499
Variable operating expenses, $m
 
  20,163
  20,924
  21,738
  22,607
  23,532
  24,516
  25,560
  26,666
  27,837
  29,075
  30,088
  31,469
  32,927
  34,465
  36,086
  37,793
  39,592
  41,486
  43,479
  45,577
  47,784
  50,105
  52,546
  55,113
  57,811
  60,648
  63,629
  66,763
  70,055
  73,515
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
  19,364
  20,163
  20,924
  21,738
  22,607
  23,532
  24,516
  25,560
  26,666
  27,837
  29,075
  30,088
  31,469
  32,927
  34,465
  36,086
  37,793
  39,592
  41,486
  43,479
  45,577
  47,784
  50,105
  52,546
  55,113
  57,811
  60,648
  63,629
  66,763
  70,055
  73,515
Operating income, $m
  1,354
  1,321
  1,383
  1,450
  1,520
  1,596
  1,676
  1,761
  1,851
  1,946
  2,047
  2,449
  2,561
  2,680
  2,805
  2,937
  3,076
  3,223
  3,377
  3,539
  3,710
  3,889
  4,078
  4,277
  4,486
  4,705
  4,936
  5,179
  5,434
  5,702
  5,984
EBITDA, $m
  2,009
  2,081
  2,161
  2,246
  2,337
  2,434
  2,537
  2,647
  2,763
  2,885
  3,015
  3,152
  3,297
  3,450
  3,611
  3,780
  3,959
  4,148
  4,346
  4,555
  4,775
  5,006
  5,249
  5,505
  5,774
  6,056
  6,354
  6,666
  6,994
  7,339
  7,702
Interest expense (income), $m
  198
  182
  206
  232
  259
  289
  320
  353
  388
  426
  465
  507
  551
  598
  648
  699
  754
  812
  873
  937
  1,004
  1,075
  1,150
  1,228
  1,311
  1,398
  1,489
  1,585
  1,686
  1,791
  1,903
Earnings before tax, $m
  1,114
  1,139
  1,177
  1,218
  1,261
  1,307
  1,356
  1,408
  1,462
  1,520
  1,581
  1,942
  2,010
  2,082
  2,158
  2,238
  2,322
  2,411
  2,504
  2,602
  2,705
  2,814
  2,928
  3,049
  3,175
  3,308
  3,448
  3,594
  3,749
  3,911
  4,081
Tax expense, $m
  186
  308
  318
  329
  341
  353
  366
  380
  395
  410
  427
  524
  543
  562
  583
  604
  627
  651
  676
  703
  730
  760
  791
  823
  857
  893
  931
  970
  1,012
  1,056
  1,102
Net income, $m
  888
  832
  860
  889
  921
  954
  990
  1,028
  1,068
  1,110
  1,154
  1,417
  1,467
  1,520
  1,575
  1,634
  1,695
  1,760
  1,828
  1,900
  1,975
  2,054
  2,138
  2,226
  2,318
  2,415
  2,517
  2,624
  2,736
  2,855
  2,979

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,085
  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
  19,153
  18,731
  19,448
  20,216
  21,035
  21,908
  22,835
  23,819
  24,862
  25,966
  27,133
  28,367
  29,669
  31,044
  32,494
  34,022
  35,632
  37,327
  39,113
  40,992
  42,970
  45,050
  47,239
  49,540
  51,960
  54,504
  57,179
  59,990
  62,944
  66,048
  69,310
Adjusted assets (=assets-cash), $m
  18,068
  18,731
  19,448
  20,216
  21,035
  21,908
  22,835
  23,819
  24,862
  25,966
  27,133
  28,367
  29,669
  31,044
  32,494
  34,022
  35,632
  37,327
  39,113
  40,992
  42,970
  45,050
  47,239
  49,540
  51,960
  54,504
  57,179
  59,990
  62,944
  66,048
  69,310
Revenue / Adjusted assets
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
  1.147
Average production assets, $m
  6,407
  6,639
  6,893
  7,165
  7,455
  7,765
  8,093
  8,442
  8,812
  9,203
  9,617
  10,054
  10,516
  11,003
  11,516
  12,058
  12,629
  13,230
  13,863
  14,529
  15,230
  15,967
  16,743
  17,558
  18,416
  19,318
  20,265
  21,262
  22,309
  23,409
  24,565
Working capital, $m
  -323
  -838
  -870
  -904
  -941
  -980
  -1,021
  -1,065
  -1,112
  -1,162
  -1,214
  -1,269
  -1,327
  -1,389
  -1,454
  -1,522
  -1,594
  -1,670
  -1,750
  -1,834
  -1,922
  -2,015
  -2,113
  -2,216
  -2,324
  -2,438
  -2,558
  -2,684
  -2,816
  -2,955
  -3,100
Total debt, $m
  4,470
  4,382
  4,929
  5,515
  6,140
  6,806
  7,513
  8,264
  9,060
  9,902
  10,793
  11,734
  12,728
  13,777
  14,883
  16,049
  17,277
  18,571
  19,933
  21,367
  22,876
  24,464
  26,133
  27,889
  29,736
  31,677
  33,717
  35,862
  38,116
  40,485
  42,974
Total liabilities, $m
  14,380
  14,292
  14,839
  15,425
  16,050
  16,716
  17,423
  18,174
  18,970
  19,812
  20,703
  21,644
  22,638
  23,687
  24,793
  25,959
  27,187
  28,481
  29,843
  31,277
  32,786
  34,374
  36,043
  37,799
  39,646
  41,587
  43,627
  45,772
  48,026
  50,395
  52,884
Total equity, $m
  4,773
  4,439
  4,609
  4,791
  4,985
  5,192
  5,412
  5,645
  5,892
  6,154
  6,431
  6,723
  7,032
  7,357
  7,701
  8,063
  8,445
  8,847
  9,270
  9,715
  10,184
  10,677
  11,196
  11,741
  12,315
  12,918
  13,551
  14,218
  14,918
  15,653
  16,427
Total liabilities and equity, $m
  19,153
  18,731
  19,448
  20,216
  21,035
  21,908
  22,835
  23,819
  24,862
  25,966
  27,134
  28,367
  29,670
  31,044
  32,494
  34,022
  35,632
  37,328
  39,113
  40,992
  42,970
  45,051
  47,239
  49,540
  51,961
  54,505
  57,178
  59,990
  62,944
  66,048
  69,311
Debt-to-equity ratio
  0.937
  0.990
  1.070
  1.150
  1.230
  1.310
  1.390
  1.460
  1.540
  1.610
  1.680
  1.750
  1.810
  1.870
  1.930
  1.990
  2.050
  2.100
  2.150
  2.200
  2.250
  2.290
  2.330
  2.380
  2.410
  2.450
  2.490
  2.520
  2.560
  2.590
  2.620
Adjusted equity ratio
  0.206
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237
  0.237

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  888
  832
  860
  889
  921
  954
  990
  1,028
  1,068
  1,110
  1,154
  1,417
  1,467
  1,520
  1,575
  1,634
  1,695
  1,760
  1,828
  1,900
  1,975
  2,054
  2,138
  2,226
  2,318
  2,415
  2,517
  2,624
  2,736
  2,855
  2,979
Depreciation, amort., depletion, $m
  655
  760
  778
  797
  817
  839
  862
  886
  912
  939
  968
  703
  735
  769
  805
  843
  883
  925
  969
  1,016
  1,065
  1,117
  1,171
  1,228
  1,288
  1,351
  1,417
  1,487
  1,560
  1,637
  1,718
Funds from operations, $m
  939
  1,592
  1,637
  1,686
  1,738
  1,793
  1,851
  1,914
  1,979
  2,049
  2,123
  2,121
  2,203
  2,289
  2,381
  2,477
  2,578
  2,685
  2,797
  2,916
  3,040
  3,171
  3,309
  3,453
  3,606
  3,766
  3,934
  4,111
  4,296
  4,492
  4,697
Change in working capital, $m
  -264
  -30
  -32
  -34
  -37
  -39
  -41
  -44
  -47
  -49
  -52
  -55
  -58
  -61
  -65
  -68
  -72
  -76
  -80
  -84
  -88
  -93
  -98
  -103
  -108
  -114
  -120
  -126
  -132
  -139
  -146
Cash from operations, $m
  1,203
  1,621
  1,669
  1,720
  1,774
  1,832
  1,893
  1,958
  2,026
  2,098
  2,175
  2,176
  2,261
  2,351
  2,445
  2,545
  2,650
  2,761
  2,877
  3,000
  3,128
  3,264
  3,406
  3,556
  3,714
  3,879
  4,054
  4,236
  4,429
  4,631
  4,843
Maintenance CAPEX, $m
  0
  -448
  -464
  -482
  -501
  -521
  -543
  -566
  -590
  -616
  -644
  -672
  -703
  -735
  -769
  -805
  -843
  -883
  -925
  -969
  -1,016
  -1,065
  -1,117
  -1,171
  -1,228
  -1,288
  -1,351
  -1,417
  -1,487
  -1,560
  -1,637
New CAPEX, $m
  -660
  -232
  -254
  -272
  -290
  -309
  -329
  -349
  -370
  -391
  -414
  -437
  -462
  -487
  -514
  -542
  -571
  -601
  -633
  -666
  -701
  -737
  -776
  -816
  -858
  -902
  -948
  -996
  -1,047
  -1,100
  -1,156
Cash from investing activities, $m
  -588
  -680
  -718
  -754
  -791
  -830
  -872
  -915
  -960
  -1,007
  -1,058
  -1,109
  -1,165
  -1,222
  -1,283
  -1,347
  -1,414
  -1,484
  -1,558
  -1,635
  -1,717
  -1,802
  -1,893
  -1,987
  -2,086
  -2,190
  -2,299
  -2,413
  -2,534
  -2,660
  -2,793
Free cash flow, $m
  615
  942
  951
  966
  983
  1,001
  1,021
  1,043
  1,066
  1,091
  1,117
  1,066
  1,096
  1,128
  1,162
  1,198
  1,236
  1,277
  1,319
  1,364
  1,412
  1,462
  1,514
  1,570
  1,628
  1,690
  1,755
  1,823
  1,895
  1,970
  2,050
Issuance/(repayment) of debt, $m
  545
  506
  547
  586
  625
  666
  707
  751
  796
  842
  891
  941
  994
  1,049
  1,106
  1,166
  1,228
  1,294
  1,362
  1,434
  1,509
  1,587
  1,670
  1,756
  1,846
  1,941
  2,041
  2,145
  2,254
  2,369
  2,489
Issuance/(repurchase) of shares, $m
  -499
  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 from financing (excl. dividends), $m  
  16
  506
  547
  586
  625
  666
  707
  751
  796
  842
  891
  941
  994
  1,049
  1,106
  1,166
  1,228
  1,294
  1,362
  1,434
  1,509
  1,587
  1,670
  1,756
  1,846
  1,941
  2,041
  2,145
  2,254
  2,369
  2,489
Total cash flow (excl. dividends), $m
  607
  1,448
  1,498
  1,552
  1,608
  1,667
  1,729
  1,794
  1,862
  1,933
  2,008
  2,007
  2,090
  2,177
  2,268
  2,364
  2,465
  2,570
  2,681
  2,798
  2,920
  3,049
  3,184
  3,326
  3,475
  3,631
  3,795
  3,968
  4,149
  4,339
  4,539
Retained Cash Flow (-), $m
  -30
  -157
  -170
  -182
  -194
  -207
  -220
  -233
  -247
  -262
  -277
  -292
  -309
  -326
  -344
  -362
  -382
  -402
  -423
  -445
  -469
  -493
  -519
  -545
  -574
  -603
  -634
  -666
  -700
  -736
  -773
Prev. year cash balance distribution, $m
 
  491
  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
 
  1,781
  1,328
  1,370
  1,414
  1,460
  1,509
  1,560
  1,615
  1,672
  1,732
  1,715
  1,781
  1,851
  1,925
  2,002
  2,083
  2,169
  2,258
  2,353
  2,452
  2,556
  2,665
  2,780
  2,901
  3,028
  3,161
  3,302
  3,449
  3,603
  3,766
Discount rate, %
 
  5.50
  5.78
  6.06
  6.37
  6.69
  7.02
  7.37
  7.74
  8.13
  8.53
  8.96
  9.41
  9.88
  10.37
  10.89
  11.43
  12.01
  12.61
  13.24
  13.90
  14.59
  15.32
  16.09
  16.89
  17.74
  18.62
  19.56
  20.53
  21.56
  22.64
PV of cash for distribution, $m
 
  1,688
  1,187
  1,148
  1,104
  1,057
  1,004
  949
  889
  827
  764
  667
  606
  544
  483
  425
  368
  316
  266
  222
  182
  146
  116
  90
  68
  51
  37
  27
  18
  13
  8
Current shareholders' claim on cash, %
  100
  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
  100.0

Whirlpool Corporation manufactures and markets home appliances and related products worldwide. The company’s principal products include laundry appliances, refrigerators and freezers, cooking appliances, dishwashers, mixers, and other small domestic appliances. It also produces hermetic compressors for refrigeration systems. The company markets and distributes its products under the Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Roper, Admiral, Inglis, Estate, Affresh, Acros, Supermatic, Bauknecht, Laden, Indesit, Privileg, KIC, Hotpoint-Ariston, Hotpoint, Consul, Brastemp, Diqua, and Gladiator brands. Whirlpool Corporation sells its products to retailers, distributors, dealers, builders, and other manufacturers. The company was founded in 1898 and is headquartered in Benton Harbor, Michigan.

FINANCIAL RATIOS  of  Whirlpool (WHR)

Valuation Ratios
P/E Ratio 14.5
Price to Sales 0.6
Price to Book 2.7
Price to Tangible Book
Price to Cash Flow 10.7
Price to Free Cash Flow 23.7
Growth Rates
Sales Growth Rate -0.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -4.2%
Cap. Spend. - 3 Yr. Gr. Rate 2.7%
Financial Strength
Quick Ratio 2
Current Ratio 0
LT Debt to Equity 81.2%
Total Debt to Equity 93.7%
Interest Coverage 7
Management Effectiveness
Return On Assets 5.5%
Ret/ On Assets - 3 Yr. Avg. 4.9%
Return On Total Capital 9.9%
Ret/ On T. Cap. - 3 Yr. Avg. 8.8%
Return On Equity 18.7%
Return On Equity - 3 Yr. Avg. 16.1%
Asset Turnover 1.1
Profitability Ratios
Gross Margin 17.8%
Gross Margin - 3 Yr. Avg. 17.5%
EBITDA Margin 9.5%
EBITDA Margin - 3 Yr. Avg. 8.9%
Operating Margin 6.5%
Oper. Margin - 3 Yr. Avg. 6.2%
Pre-Tax Margin 5.4%
Pre-Tax Margin - 3 Yr. Avg. 4.9%
Net Profit Margin 4.3%
Net Profit Margin - 3 Yr. Avg. 3.8%
Effective Tax Rate 16.7%
Eff/ Tax Rate - 3 Yr. Avg. 19.5%
Payout Ratio 33.1%

WHR stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the WHR stock intrinsic value calculation we used $20718 million for the last fiscal year's total revenue generated by Whirlpool. The default revenue input number comes from 2016 income statement of Whirlpool. 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 WHR stock valuation model: a) initial revenue growth rate of 3.7% 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 5.5%, whose default value for WHR is calculated based on our internal credit rating of Whirlpool, 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 Whirlpool.
    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 WHR stock the variable cost ratio is equal to 93.9%.

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 WHR 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 4.7% for Whirlpool.

Corporate tax rate of 27% is the nominal tax rate for Whirlpool. 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 WHR 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 WHR are equal to 30.9%.

Life of production assets of 14.3 years is the average useful life of capital assets used in Whirlpool 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 WHR is equal to -3.9%. 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 - $4773 million for Whirlpool - 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 74.313 million for Whirlpool 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 Whirlpool at the current share price and the inputted number of shares is $12.9 billion.

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COMPANY NEWS

▶ Whirlpool Corporation Declares Quarterly Dividend   [Aug-15-17 08:50AM  PR Newswire]
▶ ETFs with exposure to Whirlpool Corp. : August 11, 2017   [Aug-11-17 07:25PM  Capital Cube]
▶ Will Alphabet Inc (GOOGL) Stock Sustain Moonshot Wounds?   [Aug-04-17 08:00AM  InvestorPlace]
▶ Whirlpool misses Street 2Q forecasts   [Jul-26-17 11:36PM  Associated Press]
▶ [$$] Why Whirlpool Could Rise 35% in the Next Year   [Jul-15-17 12:01AM  Barrons.com]
▶ [$$] The Angst of Endangered CEOs: 'How Much Time Do I Have?'   [Jul-06-17 09:12AM  The Wall Street Journal]
▶ [$$] LG Electronics seeks to escape Samsung's shadow   [Jun-29-17 05:07PM  Financial Times]
▶ Adobe, FedEx gain; Actuant and Whirlpool fall   [Jun-21-17 05:10PM  Associated Press]
▶ [$$] Whirlpool CEO Jeff Fettig to Step Down in October   [07:05PM  The Wall Street Journal]
▶ Netflix Price Target Hiked, Nvidia Upgraded, Nike PT Lowered   [04:27PM  Investor's Business Daily]
▶ [$$] U.K. Election Result Piles Up Divorce Uncertainty for Business   [Jun-09-17 10:43PM  The Wall Street Journal]
▶ Whirlpool's Rise Could Be Just Beginning   [Jun-02-17 03:16PM  TheStreet.com]
▶ USF's research arm goes after Whirlpool in patent dispute   [May-31-17 03:39PM  American City Business Journals]
▶ The 3 Best Dividend Stocks of Tomorrow   [May-20-17 02:35PM  Motley Fool]
▶ Whirlpool Poised for an Upside Breakout   [May-09-17 02:50PM  TheStreet.com]
▶ ETFs with exposure to Whirlpool Corp. : May 8, 2017   [May-08-17 05:26PM  Capital Cube]
▶ Whirlpool buys Yummly recipe site, app   [May-05-17 07:58AM  ZDNet]
▶ Final Trade: WHR, BA & more   [Apr-28-17 05:25PM  CNBC Videos]
▶ RBC: 'Amazon has a potential mega-hit on its hands'   [Apr-25-17 03:37PM  Yahoo Finance]
▶ Story Stocks from Briefing.com   [11:18AM  Briefing.com]
▶ Whirlpool takes a dip   [Apr-24-17 05:18PM  CNBC Videos]
▶ Whirlpool misses 1Q profit forecasts   [05:14PM  Associated Press]
Stock chart of WHR Financial statements of WHR
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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