Complete KN Stock Valuation Analysis
Comprehensive intrinsic value analysis using 2 different methodologies
KN DCF Analysis
KN (Knowles Corporation) discounted cash flow analysis with multiple scenarios, growth assumptions, and terminal value calculations
Financial Projections
| Metrics | 2022 (Historical) | 2023 (Historical) | 2024 (Historical) | 2025 (Projected) | 2026 (Projected) | 2027 (Projected) | 2028 (Projected) | 2029 (Projected) |
|---|---|---|---|---|---|---|---|---|
| Revenue | $764.7M | $707.6M | $553.5M | $498.1M | $448.3M | $404.8M | $369.5M | $340.5M |
| Revenue Growth % | - | -7.5% | -21.8% | -10.0% | -10.0% | -9.7% | -8.7% | -7.9% |
| EBIT | $66.2M | $51.1M | $51.8M | $41.9M | $38.2M | $34.9M | $32.2M | $30.0M |
| EBIT Margin % | 8.7% | 7.2% | 9.4% | 8.4% | 8.5% | 8.6% | 8.7% | 8.8% |
| Tax Rate % | 25.0% | 0.0% | 32.6% | 21.5% | 21.9% | 22.2% | 22.6% | 22.9% |
| NOPAT | $49.6M | $51.1M | $34.9M | $32.9M | $29.8M | $27.1M | $24.9M | $23.1M |
| NOPAT Margin % | 6.5% | 7.2% | 6.3% | 6.6% | 6.7% | 6.7% | 6.7% | 6.8% |
| Capex | $32.1M | $17.2M | $13.6M | $18.8M | $16.1M | $13.8M | $11.9M | $10.5M |
| Capex / Revenue % | 4.2% | 2.4% | 2.5% | 3.8% | 3.6% | 3.4% | 3.2% | 3.1% |
| Depreciation | $53.9M | $46.5M | $50.3M | $37.7M | $33.9M | $30.6M | $28.0M | $25.8M |
| D&A / Revenue % | 7.0% | 6.6% | 9.1% | 7.6% | 7.6% | 7.6% | 7.6% | 7.6% |
| Change in NWC | $49.2M | $900.0K | $-100.4M | $10.9M | $7.8M | $5.7M | $4.1M | $3.0M |
| NWC Change / Revenue % | 6.4% | 0.1% | -18.1% | 2.2% | 1.7% | 1.4% | 1.1% | 0.9% |
| Unlevered FCF | $22.3M | $79.5M | $172.0M | $40.9M | $39.8M | $38.3M | $36.8M | $35.4M |
| UFCF % Chg. | - | 257.3% | 116.4% | -76.2% | -2.6% | -3.8% | -3.9% | -3.9% |
| FCF / Revenue % | 2.9% | 11.2% | 31.1% | 8.2% | 8.9% | 9.5% | 10.0% | 10.4% |
| Discount Factor | - | - | - | 0.910 | 0.828 | 0.753 | 0.685 | 0.623 |
| Present Value of FCF | - | - | - | $37.2M | $33.0M | $28.9M | $25.2M | $22.1M |
| Sum of PV of UFCF | - | - | - | $37.2M | $70.2M | $99.1M | $124.3M | $146.3M |
WACC Calculation
Weighted Average Cost of Capital used for discounting cash flows.
| WACC Calculation | Value |
|---|---|
| Cost of Debt | 7.0% |
| Tax Rate | 21.5% |
| After Tax Cost of Debt | 5.5% |
| Risk Free Rate | 4.46% |
| Market Risk Premium | 4.3% |
| Beta | 1.41 |
| Cost of Equity | 10.6% |
| Total Debt | $213.0M |
| Market Cap | $1.4B |
| Total Capital | $1.7B |
| Debt Weighting | 12.8% |
| Equity Weighting | 87.2% |
| WACC | 9.9% |
Terminal Value
Choose between perpetuity growth or exit multiple methods.
| Terminal Value Calculation | Value |
|---|---|
| Terminal Growth Rate | 2.5% |
| Final Year FCF | $35.4M |
| Terminal Value | $488.8M |
| PV of Terminal Value | $304.6M |
| Cumulative PV of UFCF | $146.3M |
| Net Debt | $82.9M |
| Equity Value | $368.1M |
| Shares Outstanding | 90.1M |
| Implied Share Price | $4 |
| Current Share Price | $17 |
| Implied Upside/(Downside) | -75.4% |
Valuation Summary
$4.08
Implied Price
$16.61
Current Price
-75.4%
Upside/Downside
9.9%
WACC
KN Peer Valuation Analysis
Relative valuation based on comparable company trading multiples
Peer Valuation Analysis
Fair Value Range Analysis
Based on median multiples from 10 peer companies in Technology
P/E Ratio
$-121.50
-831.5%
Peer Median: 44.3x
EV/EBITDA
$16.62
+0.1%
Peer Median: 16.8x
P/S Ratio
$16.03
-3.5%
Peer Median: 2.2x
Interpretation: Each multiple provides a different perspective on fair value. Consider which multiple is most relevant for KN's business model and current situation.
Multiple Comparison
| Multiple | KN Current | Peer Median | Peer Average | Premium/Discount | Assessment |
|---|---|---|---|---|---|
| P/E Ratio | -6.1x | 44.3x | 45.3x | -113.7% | Undervalued |
| EV/EBITDA | 17.8x | 16.8x | 17.3x | 5.6% | Fair Value |
| P/S Ratio | 2.3x | 2.2x | 2.5x | 3.6% | Fair Value |
Peer Companies
Click any company to view their valuation
| Company | Market Cap | P/E Ratio | EV/EBITDA | P/S Ratio |
|---|---|---|---|---|
| $43.41B | 95.4x | 21.3x | 3.2x | |
| $12.54B | 192.0x | 17.9x | 2.2x | |
| $5.24B | 55.5x | 16.8x | 2.4x | |
| $4.27B | 20.7x | 13.9x | 1.7x | |
| $1.98B | 8.3x | 13.0x | 0.7x | |
| $1.44B | 100.2x | 17.8x | 2.3x | |
| $1.24B | 73.5x | 15.3x | 1.5x | |
| $0.94B | 19.1x | 12.9x | 1.7x | |
| $0.12B | 0.0x | 0.0x | 1295.3x | |
| $110.64B | 44.3x | 26.8x | 6.6x |