Is MLI Stock Undervalued?

A comprehensive valuation analysis of Mueller Industries Inc (MLI) examining current multiples, intrinsic value, and comparing to analyst expectations.

8 min readView Full Analysis

Valuation Verdict

Potentially Undervalued

5683509702.0% upside potential

Based on our analysis, Mueller Industries Inc appears to be potentially undervalued at the current price of $131.11. Our fair value estimate of $7451649701.40 suggests upside potential of approximately 5683509702.0%.

Current Valuation Metrics

Valuation ratios help us understand how the market is pricing MLI relative to its fundamentals. Let's examine the key multiples investors are paying today.

P/E Ratio
19.86
Moderate
P/B Ratio
4.80
High
P/S Ratio
3.56
Moderate
EV/EBITDA
12.60
Moderate

Understanding the Metrics

  • P/E Ratio: At 19.86x earnings, MLI is trading near the typical market average of 15-20x.
  • P/B Ratio: A P/B of 4.80 means investors pay $4.80 for every $1 of book value.
  • P/S Ratio: The price-to-sales ratio of 3.56 indicates how much investors value each dollar of revenue.
  • EV/EBITDA: This ratio of 12.60 helps compare MLI to peers while accounting for debt.

Fair Value Estimate

Using a discounted cash flow (DCF) model, we estimate the intrinsic value of Mueller Industries Inc stock. This fundamental analysis looks at the company's ability to generate future cash flows and discounts them back to today's value.

Current Price
$131.11
vs
Fair Value Estimate
$7451649701.40
Implied Return+5683509702.0%

Our DCF model suggests MLI may be undervalued by approximately 5683509702.0%. This implies the market may be pricing in more pessimistic growth expectations than our base case scenario.

Analyst Price Targets

Wall Street analysts provide price targets based on their fundamental research and models. Let's see how the consensus view compares to the current price.

Current Price
$131.11
Analyst Target
$130.50
Implied Upside-0.5%

The consensus analyst price target of $130.50 suggests 0.5% downside risk from current levels. Analysts appear cautious on the stock at current levels.

Investment Conclusion

Bottom Line

Based on our comprehensive valuation analysis, Mueller Industries Inc (MLI) appears to be undervalued at $131.11. With a fair value estimate of $7451649701.40, the stock offers potential upside for long-term investors willing to wait for the market to recognize its intrinsic value.

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Always conduct your own research and consult with a financial advisor before making investment decisions. Past performance does not guarantee future results.

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