As of June 14, 2025, Miller Industries Inc's estimated intrinsic value ranges from $39.06 to $213.39 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $213.39 | +387.9% |
| Discounted Cash Flow (5Y) | $154.32 | +252.8% |
| Dividend Discount Model (Multi-Stage) | $140.56 | +221.3% |
| Dividend Discount Model (Stable) | $68.50 | +56.6% |
| Earnings Power Value | $39.06 | -10.7% |
Is Miller Industries Inc (MLR) undervalued or overvalued?
With the current market price at $43.74, 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 Miller Industries 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 | 0.96 | 1.12 |
| Cost of equity | 8.3% | 11.1% |
| Cost of debt | 4.8% | 4.8% |
| Tax rate | 21.0% | 21.3% |
| Debt/Equity ratio | 0.13 | 0.13 |
| After-tax WACC | 7.7% | 10.3% |
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 | $154 | $1,816M | 76.7% |
| 10-Year Growth | $213 | $2,493M | 61.9% |
| 5-Year EBITDA | $121 | $1,431M | 70.4% |
| 10-Year EBITDA | $163 | $1,918M | 50.5% |
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 | $44M |
| Discount Rate (WACC) | 10.3% - 7.7% |
| Enterprise Value | $425M - $565M |
| Net Debt | $48M |
| Equity Value | $377M - $518M |
| Outstanding Shares | 11M |
| Fair Value | $33 - $45 |
| Selected Fair Value | $39.06 |
| Metric | Value |
|---|---|
| Market Capitalization | $501M |
| Enterprise Value | $549M |
| Trailing P/E | 9.19 |
| Forward P/E | 7.60 |
| Trailing EV/EBITDA | 6.65 |
| Current Dividend Yield | 176.16% |
| Dividend Growth Rate (5Y) | 1.52% |
| Debt-to-Equity Ratio | 0.13 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $64.02 |
| Discounted Cash Flow (5Y) | 25% | $38.58 |
| Dividend Discount Model (Multi-Stage) | 20% | $28.11 |
| Dividend Discount Model (Stable) | 15% | $10.27 |
| Earnings Power Value | 10% | $3.91 |
| Weighted Average | 100% | $144.89 |
Based on our comprehensive valuation analysis, Miller Industries Inc's weighted average intrinsic value is $144.89, which is approximately 231.3% above the current market price of $43.74.
Key investment considerations:
Given these factors, we believe Miller Industries Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.