Investment Thesis for Whirlpool Corp. (NYSE:WHR)

Abstract

This working paper is an in-depth analysis of Whirlpool Corporation. (WHR). Our analysis examines historical performance, important acquisitions, and predictions of future performance. We combine our economic analysis with our proprietary, Hanke-Guttridge Discounted Cash Flow (HG-DCF) model to assess WHR’s financial position. Instead of obtaining a single and static valuation of WHR, Monte-Carlo simulations are used alongside our HG-DCF model to reveal the distribution of probable free cash flows and future earnings. Management compensation is also analyzed in depth to evaluate whether or not management is incentivized to act in the best interest of the shareholders. Our goal is to foster reasonable investment decisions by allowing readers to understand Whirlpool Corporations business plan and financial health.