Whirlpool corporation business risk factors: sensitivity analysis

Abstract

In this section it is performed a sensitivity analysis on three Whirlpool business risks identified in the main report. The current loss of market share and consequential negative results in EMEA influence Whirlpool’s price, but only a very pessimistic scenario would change the investor Holding recommendation. Concerning the large North American trade customer, Lowe’s, its demand requirements may imply Whirlpool’s selling price reduction, which can have a large impact in its final valuation. Lastly, the main Latin America market drivers forecast a positive tendency growth for this instable region. Nevertheless, the prolongation of the political and economic instability in Latin America could result in a change in investor recommendation from Hold to Sell.