As of June 21, 2025, Kimball International Inc's estimated intrinsic value ranges from $3.66 to $28.66 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $23.45 | +90.7% |
| Discounted Cash Flow (5Y) | $15.77 | +28.2% |
| Dividend Discount Model (Multi-Stage) | $28.66 | +133.0% |
| Earnings Power Value | $3.66 | -70.2% |
Is Kimball International Inc (KBAL) undervalued or overvalued?
With the current market price at $12.30, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Kimball International Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.61 | 0.85 |
| Cost of equity | 6.7% | 9.6% |
| Cost of debt | 4.5% | 108.9% |
| Tax rate | 25.7% | 31.0% |
| Debt/Equity ratio | 0.15 | 0.15 |
| After-tax WACC | 6.2% | 18.3% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $16 | $606M | 76.1% |
| 10-Year Growth | $23 | $887M | 56.6% |
| 5-Year EBITDA | $14 | $546M | 73.5% |
| 10-Year EBITDA | $21 | $783M | 50.8% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $15M |
| Discount Rate (WACC) | 18.3% - 6.2% |
| Enterprise Value | $84M - $246M |
| Net Debt | $31M |
| Equity Value | $53M - $214M |
| Outstanding Shares | 36M |
| Fair Value | $1 - $6 |
| Selected Fair Value | $3.66 |
| Metric | Value |
|---|---|
| Market Capitalization | $449M |
| Enterprise Value | $480M |
| Trailing P/E | 0.00 |
| Forward P/E | 105.86 |
| Trailing EV/EBITDA | 5.80 |
| Current Dividend Yield | 294.59% |
| Dividend Growth Rate (5Y) | 7.00% |
| Debt-to-Equity Ratio | 0.15 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 35% | $7.04 |
| Discounted Cash Flow (5Y) | 29% | $3.94 |
| Dividend Discount Model (Multi-Stage) | 24% | $5.73 |
| Earnings Power Value | 12% | $0.37 |
| Weighted Average | 100% | $20.09 |
Based on our comprehensive valuation analysis, Kimball International Inc's weighted average intrinsic value is $20.09, which is approximately 63.3% above the current market price of $12.30.
Key investment considerations:
Given these factors, we believe Kimball International Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.