DCF Tool

LEG

Leggett & Platt, Inc. – Upholstered Household Furniture Manufacturing
Leggett & Platt is an American diversified manufacturer that designs and produces various engineered components and products that can be found in homes and automobiles. The company offers steel rods, drawn wires, foam chemicals and additives, innersprings, specialty foams, private label finished mattresses, mattress foundations, wire forms for mattress foundations, adjustable beds, industrial sewing and quilting machines, and mattress packaging and glue drying equipment, as well as machines to produce innersprings for industrial users of steel rods and wires, manufacturers of finished bedding, big box and e-commerce retailers, bedding brands and mattress retailers, department stores, and home improvement centers.
Analysis Results
Intrinsic Value $109.60
Latest Price $33.39
Relative Value 70% 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 9.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 9.6%, 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 536 503
2023 588 518
2024 644 533
2025 706 548
2026 774 564
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 17500 million. This corresponds to a present value of 12000 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2670 million. Adding in the terminal value gives a total present value of 14600 million.

There are presently 134.0 million outstanding shares, so the intrinsic value per share is 109.6.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,065,300,000
Current Cash 361,700,000
Current Liabilities 1,335,700,000
Current Debt 300,900,000
Non-Cash Working Capital (NCWC) 668,800,000
Change in NCWC 359,100,000
EBIT 548,700,000
Tax Provision 119,500,000
Depreciation and Amortization 187,300,000
Capital Expenditure -106,600,000
Unlevered Free Cash Flow 862,911,702
Current Assets 1,612,100,000
Current Cash 348,900,000
Current Liabilities 1,006,000,000
Current Debt 52,500,000
Non-Cash Working Capital (NCWC) 309,700,000
Change in NCWC -114,200,000
EBIT 404,900,000
Tax Provision 73,200,000
Depreciation and Amortization 189,400,000
Capital Expenditure -66,200,000
Unlevered Free Cash Flow 321,538,890
Current Assets 1,538,100,000
Current Cash 247,600,000
Current Liabilities 928,100,000
Current Debt 61,500,000
Non-Cash Working Capital (NCWC) 423,900,000
Change in NCWC -28,700,000
EBIT 517,600,000
Tax Provision 96,200,000
Depreciation and Amortization 191,900,000
Capital Expenditure -143,100,000
Unlevered Free Cash Flow 421,928,970
Current Assets 1,524,600,000
Current Cash 268,100,000
Current Liabilities 815,700,000
Current Debt 11,800,000
Non-Cash Working Capital (NCWC) 452,600,000
Change in NCWC 23,600,000
EBIT 443,100,000
Tax Provision 78,300,000
Depreciation and Amortization 136,100,000
Capital Expenditure -159,600,000
Unlevered Free Cash Flow 352,943,158
Current Assets 1,766,500,000
Current Cash 526,100,000
Current Liabilities 976,200,000
Current Debt 164,800,000
Non-Cash Working Capital (NCWC) 429,000,000
Change in NCWC 71,200,000
EBIT 443,600,000
Tax Provision 138,400,000
Depreciation and Amortization 95,300,000
Capital Expenditure -159,400,000
Unlevered Free Cash Flow 308,583,703
Current Assets 1,324,900,000
Current Cash 281,900,000
Current Liabilities 706,600,000
Current Debt 21,400,000
Non-Cash Working Capital (NCWC) 357,800,000
Change in NCWC -23,100,000
EBIT 482,500,000
Tax Provision 120,000,000
Depreciation and Amortization 86,800,000
Capital Expenditure -124,000,000
Unlevered Free Cash Flow 303,333,237
Current Assets 1,311,200,000
Current Cash 253,200,000
Current Liabilities 701,200,000
Current Debt 24,100,000
Non-Cash Working Capital (NCWC) 380,900,000
Change in NCWC 73,700,000
EBIT 485,500,000
Tax Provision 121,800,000
Depreciation and Amortization 83,500,000
Capital Expenditure -103,200,000
Unlevered Free Cash Flow 408,032,903
Current Assets 1,429,600,000
Current Cash 332,800,000
Current Liabilities 992,200,000
Current Debt 202,600,000
Non-Cash Working Capital (NCWC) 307,200,000
Change in NCWC -62,500,000
EBIT 321,100,000
Tax Provision 70,300,000
Depreciation and Amortization 89,900,000
Capital Expenditure -94,100,000
Unlevered Free Cash Flow 178,009,712
Current Assets 1,281,700,000
Current Cash 272,700,000
Current Liabilities 829,500,000
Current Debt 190,200,000
Non-Cash Working Capital (NCWC) 369,700,000
Change in NCWC -82,600,000
EBIT 326,400,000
Tax Provision 55,000,000
Depreciation and Amortization 90,100,000
Capital Expenditure -80,600,000
Unlevered Free Cash Flow 180,854,479
Current Assets 1,339,100,000
Current Cash 359,100,000
Current Liabilities 731,000,000
Current Debt 203,300,000
Non-Cash Working Capital (NCWC) 452,300,000
Change in NCWC 31,100,000
EBIT 341,900,000
Tax Provision 56,300,000
Depreciation and Amortization 116,100,000
Capital Expenditure -71,000,000
Unlevered Free Cash Flow 354,864,224

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