Is the Recent 19% Drop in Whirlpool Shares a Signal for Opportunity in 2025?

Thinking about what to do with Whirlpool stock right now? You’re definitely not alone. The company’s share price has been on a wild ride lately, and investors are wondering if the recent dip is an opportunity or a warning. After a bumpy year, closing most recently at $76.63, shares are down nearly 19% in the last month and over 33% so far this year. Over the past five years, the stock has fallen more than 50%. Clearly, the market’s sentiment towards Whirlpool has shifted, in part reflecting broad economic concerns and some sector-specific headwinds, such as shifting consumer demand for big-ticket appliances and ongoing supply chain adjustments.

But here is where things get interesting. Despite the rough patch, Whirlpool actually scores a 5 out of 6 on our valuation checklist, indicating it is passing almost every major test for being undervalued. That might suggest the market has grown overly cautious or perhaps even missed something in the numbers. Before you make your next move, let’s walk through how Whirlpool stacks up on different valuation methods. And, just as important, keep an eye out for an even smarter way to gauge the company’s true worth, which we will reveal at the end of the article.

Why Whirlpool is lagging behind its peers

Approach 1: Whirlpool Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model estimates a company's value by projecting its future cash flows and discounting them back to today's value. This process gives investors an idea of what the business might really be worth. For Whirlpool, this approach uses a 2 Stage Free Cash Flow to Equity model based on current performance and future expectations.

Currently, Whirlpool generates Free Cash Flow (FCF) of $178 million. Analysts provide growth projections for the next several years, with estimates suggesting FCF could rise to $536 million by 2027. After that point, Simply Wall St extrapolates additional growth, leading to a projected FCF of more than $1.1 billion by 2035. All cash flows are in US dollars.

Using these projections and discounting them to present value, the DCF method calculates an intrinsic fair value for Whirlpool of $146.94 per share. This compares to its most recent closing price of $76.63. According to the DCF analysis, the stock is trading at a 47.8% discount to its intrinsic value, which may indicate significant undervaluation by the market.

Result: UNDERVALUED

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

Our Discounted Cash Flow (DCF) analysis suggests Whirlpool is undervalued by 47.8%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

Approach 2: Whirlpool Price vs Sales

When evaluating companies in the consumer durables sector, the Price-to-Sales (P/S) ratio is especially helpful. This metric is favored for firms like Whirlpool because profitability can be cyclical, yet sales remain a reliable gauge of business activity. High growth expectations or perceived stability usually justify a higher P/S ratio, while extra risks or low margins call for a discount.

Currently, Whirlpool trades at a P/S ratio of 0.28x, which is substantially lower than both the consumer durables industry average of 0.61x and the peer average of 1.13x. On the surface, this deep discount suggests the market is cautious about Whirlpool’s near-term prospects compared to its peers.

Simply Wall St’s proprietary “Fair Ratio” goes a step further by estimating the ideal P/S for Whirlpool. It weighs not just the company’s size and sector but also expected earnings growth, profit margin trends, and specific business risks. This makes the Fair Ratio a more tailored benchmark than a simple comparison to peers or the industry at large. For Whirlpool, the Fair Ratio comes in at 0.61x, very close to the industry average.

With the current P/S ratio at 0.28x and the Fair Ratio at 0.61x, Whirlpool appears significantly undervalued by this measure.

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 Whirlpool Narrative

Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives, a new, smarter way to make investment decisions that goes beyond just numbers.

A Narrative is your story for a company, combining your expectations for its future sales, profits, and margins with your estimation of its fair value, all shaped by your unique perspective on its opportunities and risks.

Unlike traditional models that only crunch figures, Narratives connect Whirlpool’s business story, such as its product launches, global expansion, or industry headwinds, to a financial forecast and then a fair value. This approach makes your investment rationale crystal clear.

Anyone can create and share Narratives easily on the Simply Wall St Community page, and millions of investors use them to outline and track their investment decisions with just a few clicks.

Narratives make it straightforward to compare your calculated fair value to the current share price, so you can decide when it might be time to buy or sell based on your own research, not just groupthink.

Best of all, Narratives are dynamic. If earnings, news, or forecasts change, your Narrative updates automatically to reflect new information, with no spreadsheet required.

For Whirlpool, for example, some investors see new products and Asian market growth justifying a $145 price target, while others, wary of competition and macro risks, see fair value closer to $63. Your unique Narrative puts you in control.

Do you think there's more to the story for Whirlpool? 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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