As of December 15, 2025, Winnebago Industries Inc's estimated intrinsic value ranges from $30.01 to $196.22 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $196.22 | +400.1% |
| Discounted Cash Flow (5Y) | $180.83 | +360.8% |
| Dividend Discount Model (Multi-Stage) | $127.13 | +224.0% |
| Dividend Discount Model (Stable) | $30.01 | -23.5% |
| Earnings Power Value | $57.43 | +46.4% |
Is Winnebago Industries Inc (WGO) undervalued or overvalued?
With the current market price at $39.24, 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 Winnebago 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 | 0.49 | 0.75 |
| Cost of equity | 6.1% | 9.1% |
| Cost of debt | 4.5% | 9.1% |
| Tax rate | 23.0% | 23.6% |
| Debt/Equity ratio | 0.5 | 0.5 |
| After-tax WACC | 5.2% | 8.4% |
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 | $181 | $5,468M | 87.1% |
| 10-Year Growth | $196 | $5,902M | 74.3% |
| 5-Year EBITDA | $75 | $2,487M | 71.6% |
| 10-Year EBITDA | $99 | $3,155M | 51.9% |
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 | $128M |
| Discount Rate (WACC) | 8.4% - 5.2% |
| Enterprise Value | $1,530M - $2,443M |
| Net Debt | $366M |
| Equity Value | $1,164M - $2,077M |
| Outstanding Shares | 28M |
| Fair Value | $41 - $74 |
| Selected Fair Value | $57.43 |
| Metric | Value |
|---|---|
| Market Capitalization | $1107M |
| Enterprise Value | $1473M |
| Trailing P/E | 43.07 |
| Forward P/E | 17.37 |
| Trailing EV/EBITDA | 7.65 |
| Current Dividend Yield | 351.41% |
| Dividend Growth Rate (5Y) | 24.54% |
| Debt-to-Equity Ratio | 0.50 |
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% | $58.87 |
| Discounted Cash Flow (5Y) | 25% | $45.21 |
| Dividend Discount Model (Multi-Stage) | 20% | $25.43 |
| Dividend Discount Model (Stable) | 15% | $4.50 |
| Earnings Power Value | 10% | $5.74 |
| Weighted Average | 100% | $139.74 |
Based on our comprehensive valuation analysis, Winnebago Industries Inc's intrinsic value is $139.74, which is approximately 256.1% above the current market price of $39.24.
Key investment considerations:
Given these factors, we believe Winnebago Industries Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.