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Bassett Furniture Industries Inc. – Wood Kitchen Cabinet and Countertop Manufacturing
Bassett Furniture Industries, Inc. is a leading manufacturer and marketer of high quality home furnishings. With 97 company- and licensee-owned stores at the time of this release, Bassett has leveraged its strong brand name in furniture into a network of corporate and licensed stores that focus on providing consumers with a friendly environment for buying furniture and accessories. Bassett's retail strategy includes stylish, custom-built furniture that features the latest on-trend furniture styles, free in-home design visits, and coordinated decorating accessories. Bassett also has a traditional wholesale business with more than 700 accounts on the open market, across the United States and internationally and a logistics business specializing in home furnishings.
Analysis Results
Intrinsic Value $426.78
Latest Price $16.15
Relative Value 96% undervalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 54.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 54.5%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 71.3 65.3
2023 110 92.4
2024 170 131
2025 263 185
2026 407 262
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 5750 million. This corresponds to a present value of 3390 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 735 million. Adding in the terminal value gives a total present value of 4120 million.

There are presently 9.66 million outstanding shares, so the intrinsic value per share is 426.78.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 360,568,000
Current Cash 104,178,000
Current Liabilities 268,438,000
Current Debt 0
Non-Cash Working Capital (NCWC) -12,048,000
Change in NCWC 1,208,000
EBIT 51,998,000
Tax Provision 12,396,000
Depreciation and Amortization 29,194,000
Capital Expenditure -21,500,000
Unlevered Free Cash Flow 47,604,471
Current Assets 145,918,000
Current Cash 48,690,000
Current Liabilities 110,484,000
Current Debt 0
Non-Cash Working Capital (NCWC) -13,256,000
Change in NCWC 7,951,000
EBIT -9,506,000
Tax Provision -10,824,000
Depreciation and Amortization 13,624,000
Capital Expenditure -6,557,750
Unlevered Free Cash Flow 5,511,250
Current Assets 136,786,000
Current Cash 37,123,000
Current Liabilities 72,271,000
Current Debt 0
Non-Cash Working Capital (NCWC) 27,392,000
Change in NCWC 16,483,000
EBIT 7,446,000
Tax Provision 188,000
Depreciation and Amortization 13,500,000
Capital Expenditure -17,375,000
Unlevered Free Cash Flow 20,054,000
Current Assets 148,547,000
Current Cash 56,111,000
Current Liabilities 81,819,000
Current Debt 292,000
Non-Cash Working Capital (NCWC) 10,909,000
Change in NCWC 8,552,000
EBIT 14,854,000
Tax Provision 3,988,000
Depreciation and Amortization 13,203,000
Capital Expenditure -18,301,000
Unlevered Free Cash Flow 13,454,833
Current Assets 159,382,000
Current Cash 77,074,000
Current Liabilities 83,356,000
Current Debt 3,405,000
Non-Cash Working Capital (NCWC) 2,357,000
Change in NCWC -6,220,000
EBIT 27,018,000
Tax Provision 9,620,000
Depreciation and Amortization 13,312,000
Capital Expenditure -15,500,000
Unlevered Free Cash Flow 9,286,095
Current Assets 140,569,000
Current Cash 58,269,000
Current Liabilities 77,013,000
Current Debt 3,290,000
Non-Cash Working Capital (NCWC) 8,577,000
Change in NCWC -4,737,000
EBIT 28,193,000
Tax Provision 9,948,000
Depreciation and Amortization 12,249,000
Capital Expenditure -21,501,000
Unlevered Free Cash Flow 3,323,604
Current Assets 147,284,000
Current Cash 59,393,000
Current Liabilities 79,850,000
Current Debt 5,273,000
Non-Cash Working Capital (NCWC) 13,314,000
Change in NCWC -5,477,000
EBIT 27,183,000
Tax Provision 11,435,000
Depreciation and Amortization 10,137,000
Capital Expenditure -13,974,000
Unlevered Free Cash Flow 8,115,089
Current Assets 135,362,000
Current Cash 49,798,000
Current Liabilities 66,773,000
Current Debt 0
Non-Cash Working Capital (NCWC) 18,791,000
Change in NCWC -15,284,000
EBIT 15,792,000
Tax Provision 5,308,000
Depreciation and Amortization 7,316,000
Capital Expenditure -17,980,000
Unlevered Free Cash Flow -15,894,614
Current Assets 126,374,000
Current Cash 40,858,000
Current Liabilities 51,441,000
Current Debt 0
Non-Cash Working Capital (NCWC) 34,075,000
Change in NCWC -287,000
EBIT 10,775,000
Tax Provision 3,091,000
Depreciation and Amortization 6,198,000
Capital Expenditure -14,302,000
Unlevered Free Cash Flow -1,684,098

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