2 models fit MasterBrand Inc. Common Stock and they agree: 2 of 2 land within 15% of the average. The price is above every model.
Two or more of our models back this value.
Premium(i)
Valued as a mature, profitable company: Discounted cash flow, EV/EBITDA comparison, and Graham number.
ACCE opinionMasterBrand Inc. Common Stock (MBC)
Fair value (2 models)
$6.05
ACCE price target
$6.80
Rating
Overvalued
Horizon
12 months
Fair value published on 20 Oct 2026, 15:04 CEST; previously $5.95 since 16 Oct 2026, 00:00 CEST.
ACCE price target published on 12 Oct 2026, 00:00 CEST.
Price used: $7.30 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow 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
20.7% above
-17.1% to fair value
ACCE score
31
out of 100
Analysts
0% buy
2 covering
P/E
0.0x
forward 45.0x
1-year return
-43.8%
Dividend yield
0.00%
MasterBrand Inc. Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
MasterBrand makes kitchen and bath cabinetry for the North American residential market, supplying builders, dealers and home centers under brands including Aristokraft, Schrock and Diamond. The business is a scale manufacturer in a cyclical, housing-linked category, and its appeal rests on distribution depth and the replacement-cabinet side of remodeling rather than on any product moat. Revenue grew 11.5%, but operating margin of 2.3% and a negative 5.8% ROE leave little cushion, and the 45x forward P/E is priced for a margin recovery the current numbers don't yet show. The thesis hinges on whether volume gains can translate into operating leverage as housing activity normalizes. The company's 26.9% gross margin shows the product mix holds up, so the question is how much of that survives down to operating profit. Worth a deeper look only if the team sees a credible path to margin expansion; the score of 32/100 and absence from any index argue for caution until that is demonstrated.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Earnings sharply down
Earnings fell 36.4% year on year while revenue rose 11.5%, so margin pressure is biting. Operating margin is only 2.3% and net margin is -3.5%.
high
Heavy short interest
Short interest is 11.2% of shares. Combined with insider sales of $0.75M against buys of $0.19M, the market is leaning negative on this name.
moderate
Leverage and negative ROE
Debt to equity is 1.00 and ROE is -5.8%, so the balance sheet is carrying debt without earning a return on it. Free cash flow of $118M offsets this partly.
moderate
Valuation stretched on earnings
Five-year revenue growth is only 2.1% a year.
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
Revenue grew 11.5% year over year, well ahead of the 2.1% yearly average over five years.
Free cash flow over the last twelve months reached $118M, and the free cash flow yield stands at 8.5%.
Analysts' mean price target of $9.63 sits 49.8% above the current share price, though none of the two covering analysts rates it Buy.
Why it could disappoint
Net margin is -3.5% and return on equity is -5.8%, so the company is still losing money on its sales and equity.
The latest earnings per share came in 28.6% below expectations at $0.05 against $0.07 expected, and return on invested capital is just 0.8%.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 5, 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
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Where MBC's valuation models land
Price
$7.30
Model fair value
$6.05
Model range
$5.54 to $6.41
Fair value $6.05
Price $7.30
The price is above the whole model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
Graham number
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Quality
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