Does the MillerKnoll Share Price Slide Signal a Long-Term Opportunity in 2025?

If you have been eyeing MillerKnoll, you are probably wondering whether now is the moment to sit tight, cut your losses, or double down. This stock has definitely kept investors on their toes lately, with notable ups and downs. A modest 1.0% climb in the last week is nothing to sneer at, yet that's in stark contrast to a rougher patch over the last month and longer, where losses have stretched to -17.0% in 30 days and a tough -31.7% compared to this time last year. Despite those drops, the company has weathered market shifts before, managing a small positive return over three years. Recent interest in the design and office furniture sector, shaped in part by changing workplace habits and broader market shifts, has kept MillerKnoll’s name in the mix for savvy value-seekers.

Now, here’s where it gets intriguing for anyone focused on value. MillerKnoll scores a 4 out of 6 when we check key undervaluation signals. That puts the company above average when measured by traditional approaches, especially in a sector where finding bargains can be a challenge. Of course, each valuation method tells a slightly different story, so before making your next move, let’s lay out how each assesses MillerKnoll and what that means for you as an investor. And, stick around, there is an even more insightful angle on valuation waiting for you at the end.

Why MillerKnoll is lagging behind its peers

Approach 1: MillerKnoll Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model estimates a company's value by projecting its future cash flows and then discounting those projections back to today's dollars. This method gives investors a sense of the company's "intrinsic" value, making it a popular approach for long-term, value-focused analysis.

For MillerKnoll, the current Free Cash Flow is about $103.2 million, and analysts forecast a gradual increase over time. By 2027, Free Cash Flow is expected to reach nearly $120 million. While direct analyst estimates typically stretch only five years into the future, future cash flows for the next decade are extrapolated using moderate growth rates. This approach aims to ensure the DCF model is neither overly optimistic nor overly pessimistic about long-term prospects.

Based on these detailed projections and discounting, MillerKnoll's estimated fair value is $20.48 per share. With the DCF model indicating the stock is trading at an 18.8% discount to this intrinsic value, the findings suggest the shares may be undervalued compared to their potential.

Result: UNDERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for MillerKnoll.

Our Discounted Cash Flow (DCF) analysis suggests MillerKnoll is undervalued by 18.8%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

Approach 2: MillerKnoll Price vs Sales

Price-to-Sales (P/S) is a valuable valuation metric, especially for companies where consistent profitability may fluctuate but revenue remains a solid anchor for comparing value. For profitable companies like MillerKnoll, the P/S ratio helps investors gauge how much the market is willing to pay for each dollar of revenue. This makes it particularly useful when earnings are influenced by non-cash items or temporary industry headwinds.

Generally, the "right" P/S ratio takes into account not just revenue, but also the company’s expected growth and risk profile. High growth or lower risk companies tend to command a higher P/S, whereas more mature or riskier businesses will typically trade at a lower multiple.

MillerKnoll is currently trading at a P/S ratio of 0.30x, which is noticeably below both the industry average of 1.52x and the leading peer group average of 0.88x. While comparing against benchmarks like peers and the industry can be insightful, Simply Wall St's proprietary Fair Ratio goes a step further. The Fair Ratio (0.99x) reflects a more nuanced view that blends MillerKnoll’s earnings growth prospects, industry characteristics, profit margins, and its size and risk profile.

This Fair Ratio paints a more accurate picture than peer or industry comparisons alone because it weighs all the key drivers of a company's value rather than just current market sentiment. MillerKnoll’s actual P/S ratio sits significantly below the Fair Ratio, which suggests that the market could be undervaluing the company based on its long-term potential and standing.

Result: UNDERVALUED

PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your MillerKnoll Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. A Narrative is your story about a company, where you connect the dots between what you believe will happen with its business and the numbers in your forecast, such as revenue growth, profit margins, and future earnings.

Narratives allow you to translate your perspective into a financial forecast and, ultimately, a fair value estimate for the stock, making your investment thesis explicit and actionable. This approach lets you test your view against reality and see how your expectations for MillerKnoll compare to other investors or the market.

Best of all, Narratives are quickly accessible for free on Simply Wall St’s Community page, where millions of investors share and refine their investment stories. You can instantly compare a stock's Fair Value with its latest Price, helping you decide when to buy, hold, or sell. Narratives automatically update as new facts, earnings, or news are released.

For example, some MillerKnoll investors with an optimistic view project a fair value up to $38.00 per share if global retail expansion and improved profit margins play out, while more cautious investors, weighing risks like tariffs and market uncertainty, estimate fair value closer to $20.49. Your view might land somewhere in between, but with Narratives, it is easy to see and test your own story against the latest data.

Do you think there's more to the story for MillerKnoll? Create your own Narrative to let the Community know!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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