DCF Tool

LZB

La-Z-Boy Inc. – Upholstered Household Furniture Manufacturing
La-Z-Boy Incorporated is one of the world's leading residential furniture producers, marketing furniture for every room of the home. The Wholesale segment includes England, La-Z-Boy, American Drew®, Hammary®, and Kincaid®. The company-owned Retail segment includes 158 of the 351 La-Z-Boy Furniture Galleries® stores. Joybird is an e-commerce retailer and manufacturer of upholstered furniture. The corporation's branded distribution network is dedicated to selling La-Z-Boy Incorporated products and brands, and includes 351 stand-alone La-Z-Boy Furniture Galleries® stores and 563 independent Comfort Studio® locations, in addition to in-store gallery programs for the company's Kincaid and England operating units.
Analysis Results
Intrinsic Value $17.95
Latest Price $22.57
Relative Value 26% overvalued
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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 1.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 1.3%, 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)
2023 59.3 54.4
2024 60.1 50.5
2025 60.9 46.9
2026 61.7 43.6
2027 62.4 40.5
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 902 million. This corresponds to a present value of 536 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 236 million. Adding in the terminal value gives a total present value of 772 million.

There are presently 43.0 million outstanding shares, so the intrinsic value per share is 17.95.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 951,776,000
Current Cash 262,948,000
Current Liabilities 675,689,000
Current Debt 123,000
Non-Cash Working Capital (NCWC) 13,262,000
Change in NCWC 110,433,000
EBIT 206,756,000
Tax Provision 53,163,000
Depreciation and Amortization 112,713,000
Capital Expenditure -76,580,000
Unlevered Free Cash Flow 299,831,729
Current Assets 926,160,000
Current Cash 411,782,000
Current Liabilities 611,670,000
Current Debt 121,000
Non-Cash Working Capital (NCWC) -97,171,000
Change in NCWC -164,804,000
EBIT 136,736,000
Tax Provision 38,384,000
Depreciation and Amortization 33,021,000
Capital Expenditure -37,960,000
Unlevered Free Cash Flow -68,976,890
Current Assets 626,326,000
Current Cash 283,524,000
Current Liabilities 350,169,000
Current Debt 75,000,000
Non-Cash Working Capital (NCWC) 67,633,000
Change in NCWC -83,853,000
EBIT 145,624,000
Tax Provision 36,189,000
Depreciation and Amortization 31,192,000
Capital Expenditure -46,035,000
Unlevered Free Cash Flow 1,170,861
Current Assets 541,118,000
Current Cash 151,176,000
Current Liabilities 238,636,000
Current Debt 180,000
Non-Cash Working Capital (NCWC) 151,486,000
Change in NCWC -34,827,000
EBIT 129,674,000
Tax Provision 25,186,000
Depreciation and Amortization 31,147,000
Capital Expenditure -48,433,000
Unlevered Free Cash Flow 43,300,304
Current Assets 518,218,000
Current Cash 150,781,000
Current Liabilities 181,347,000
Current Debt 223,000
Non-Cash Working Capital (NCWC) 186,313,000
Change in NCWC 26,121,000
EBIT 129,369,000
Tax Provision 47,295,000
Depreciation and Amortization 31,767,000
Capital Expenditure -36,337,000
Unlevered Free Cash Flow 103,449,235
Current Assets 517,422,000
Current Cash 158,773,000
Current Liabilities 198,676,000
Current Debt 219,000
Non-Cash Working Capital (NCWC) 160,192,000
Change in NCWC -36,968,000
EBIT 130,581,000
Tax Provision 43,756,000
Depreciation and Amortization 29,131,000
Capital Expenditure -20,304,000
Unlevered Free Cash Flow 58,737,214
Current Assets 481,972,000
Current Cash 127,675,000
Current Liabilities 157,427,000
Current Debt 290,000
Non-Cash Working Capital (NCWC) 197,160,000
Change in NCWC -8,595,000
EBIT 122,968,000
Tax Provision 44,080,000
Depreciation and Amortization 26,517,000
Capital Expenditure -24,684,000
Unlevered Free Cash Flow 72,857,476
Current Assets 476,451,000
Current Cash 116,202,000
Current Liabilities 154,891,000
Current Debt 397,000
Non-Cash Working Capital (NCWC) 205,755,000
Change in NCWC 10,328,000
EBIT 102,794,000
Tax Provision 36,954,000
Depreciation and Amortization 22,283,000
Capital Expenditure -70,319,000
Unlevered Free Cash Flow 29,123,476
Current Assets 522,673,000
Current Cash 167,361,000
Current Liabilities 167,382,000
Current Debt 7,497,000
Non-Cash Working Capital (NCWC) 195,427,000
Change in NCWC -12,818,000
EBIT 94,135,000
Tax Provision 31,383,000
Depreciation and Amortization 23,182,000
Capital Expenditure -33,730,000
Unlevered Free Cash Flow 38,503,043
Current Assets 500,880,000
Current Cash 142,985,000
Current Liabilities 150,163,000
Current Debt 513,000
Non-Cash Working Capital (NCWC) 208,245,000
Change in NCWC 8,545,000
EBIT 67,627,000
Tax Provision 23,528,000
Depreciation and Amortization 23,140,000
Capital Expenditure -25,912,000
Unlevered Free Cash Flow 50,897,835
Current Assets 500,000,000
Current Cash 152,370,000
Current Liabilities 149,759,000
Current Debt 1,829,000
Non-Cash Working Capital (NCWC) 199,700,000
Change in NCWC 9,723,000
EBIT 49,631,000
Tax Provision -22,051,000
Depreciation and Amortization 23,486,000
Capital Expenditure -15,663,000
Unlevered Free Cash Flow 67,177,000

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