Kenvue Inc. (KVUE) DCF Valuation
TGM's two-stage DCF values Kenvue Inc. (KVUE) between $11.94 and $24.95 depending on assumptions, with a base case of $16.34. Growth is taken from the company's own record (5-year revenue CAGR (FCF growth too volatile to use) (floored at 2%)), fading to 2.5% long-run; the discount rate (7.5%) reflects its beta.
What would today's price require?
$18.41 is justified only if free cash flow grows about +4.3% a year (fading to 2.5% long-run) at a 7.5% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 0.5%/yr | 8.5% | $11.94 |
| Base case | 2.0%/yr | 7.5% | $16.34 |
| Optimistic | 5.0%/yr | 6.5% | $24.95 |
| Analyst DCF (FMP) | independent reference — different model | $30.50 | |
Current Price
$18.41
Market-Implied Growth
+4.3%/yr
vs -7.3% 5Y actual
Model Scenario Range
$11.94 – $24.95
model output — not a price target
KVUE DCF Fair Value Calculator
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for KVUE (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $1.9B · 1.92B shares · net debt $7.5B
Estimated Fair Value
$15.98
-13.2% vs $18.41
Sensitivity — fair value by discount rate × terminal growth
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 2.0%/yr FCF growth and 10-year horizon fixed. Green = above today's $18.41; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 5.5% | $22.79 | $25.50 | $29.11 | $34.18 | $41.77 |
| 6.5% | $17.42 | $18.97 | $20.91 | $23.40 | $26.72 |
| 7.5% | $13.84 | $14.81 | $15.98 | $17.40 | $19.18 |
| 8.5% | $11.29 | $11.94 | $12.69 | $13.59 | $14.66 |
| 9.5% | $9.37 | $9.83 | $10.34 | $10.94 | $11.64 |
About Kenvue Inc.
Kenvue Inc. functions as a global leader in the consumer health sector. The company structures its operations across three primary divisions: Self Care, Skin Health and Beauty, and Essential Health. Within the Self Care unit, it offers a diverse range of products for common conditions like coughs, colds, and allergies, in addition to pain relief, digestive health, and smoking cessation aids, featuring prominent brands such as Tylenol, Nicorette, and Zyrtec. The Skin Health and Beauty segment delivers various solutions for facial, body, hair, and sun protection, recognized under popular labels including Neutrogena, Aveeno, and OGX. Moreover, the Essential Health category provides oral hygiene, infant care, feminine wellness, and wound treatment products, marketed through esteemed brands like Listerine, Johnson's, Band-Aid, and Stayfree. Established in 2022, Kenvue Inc. maintains its corporate headquarters in Skillman, New Jersey, and operates as a subsidiary of Johnson & Johnson.
- Sector
- Consumer Defensive
- Industry
- Household & Personal Products
- CEO
- Kirk L. Perry