4 models fit Fortune Brands Innovations Inc. Common Stock and they disagree: 0 of 4 land within 15% of the average.
Two or more of our models back this value.
Large discount(i)Silver71
Valued as a cyclical company: P/E comparison, EV/EBITDA comparison, Discounted cash flow, and Graham number.
ACCE opinionFortune Brands Innovations Inc. Common Stock (FBIN)
Fair value (4 models)
$56.38
ACCE price target
$43.00
Rating
Undervalued
Horizon
12 months
Fair value published on 21 Oct 2026, 13:04 CEST; previously $56.98 since 12 Oct 2026, 00:00 CEST.
ACCE price target published on 11 Oct 2026, 00:00 CEST.
Rating published on 21 Oct 2026, 13:04 CEST.
Price used: $42.98 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, EV/EBITDA comparison, and Graham number.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
23.8% below
+31.2% to fair value
ACCE score
42
out of 100
Analysts
40% buy
20 covering
P/E
34.7x
forward 13.0x
1-year return
-16.8%
Dividend yield
2.38%
Fortune Brands Innovations Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Fortune Brands makes plumbing fixtures (Moen faucets and showerheads), kitchen and bath cabinetry (Masterbrand is separate, so this is Fortune Brands' own cabinetry and water and security products such as Master Lock and Therma-Tru doors), selling mostly into the repair-and-remodel market where brand recognition and channel depth at home centers and wholesale distributors matter more than price. The moat is real but narrow, and it is currently being tested: revenue fell 4.1% over the latest reported year and ROE sits at 6.4%, so the franchise is earning well below what its 44.3% gross margin would suggest. Any earnings recovery depends on a turn in housing turnover and remodel activity, which is the variable to watch rather than anything the company controls. The stock screens expensive on trailing earnings at 32.3 times but much cheaper on forward estimates at 11.7 times, a gap that says the market is either doubting the earnings base or pricing a sharp rebound. With an operating margin of 11.0% and a score of 39/100, the case rests on margin repair, not on growth, and it is not yet clear the numbers support a deeper look beyond verifying that forward estimates hold up.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Earnings collapsing on revenue decline
Earnings fell 52.4% year over year while revenue dropped 4.1%, and operating margin of 11.0% and net margin of 3.4% leave little buffer. Earnings momentum is clearly negative.
high
Leverage elevated against thin returns
Debt/Equity of 1.07 combined with ROE of just 6.4% means the balance sheet is carrying significant debt for modest returns on equity, limiting flexibility if the downturn persists.
moderate
Score deteriorated over 90 days
The ACCE score fell from 44 to 39 over 90 days, with momentum scoring just 25 and growth 7, reflecting weakening fundamentals rather than a single bad quarter.
moderate
Short interest rising
Short interest sits at 7.2% of shares, which signals some investors are betting on further weakness, though it is not an extreme level on its own.
AI research notes
AI-assisted·How I use AIWritten Oct 19, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Free cash flow over the last twelve months reached $367M, and the stock yields 7.7% on that cash flow.
Earnings beat expectations by 66.7% last quarter, with earnings per share of 1.35 against 0.81 expected.
The share count fell 3.6% last fiscal year, and the stock also pays a 2.5% dividend yield.
Why it could disappoint
Revenue fell 4.1% year over year, well below the 4.3% average annual growth over five years.
Return on invested capital of 5.0% and debt at 1.07 times equity leave little margin for error.
The stock trades at 11.7 times forward earnings, while the sector median is 23.8 times, and the company remains exposed to weak repair and remodel demand.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 3, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where FBIN's valuation models land
Price
$42.98
Model fair value
$56.38
Model range
$26.94 to $98.54
Fair value $56.38
Price $42.98
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
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Quality and conviction INVESTOR FEATURE
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