DCF Tool

MLHR

Herman Miller Inc. – Wood Office Furniture Manufacturing
Herman Miller is a globally recognized leader in design. Since its inception in 1905, the company's innovative, problem-solving designs and furnishings have inspired the best in people wherever they live, work, learn, heal, and play. In 2018, Herman Miller created Herman Miller Group, a purposefully selected, complementary family of brands that includes Colebrook Bosson Saunders, Design Within Reach, Geiger, HAY, Maars Living Walls, Maharam, naughtone, and Nemschoff. Guided by a shared purpose-design for the good of humankind-Herman Miller Group shapes places that matter for customers while contributing to a more equitable and sustainable future for all.
Analysis Results
Intrinsic Value $152.36
Latest Price $39.04
Relative Value 74% 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 15.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 15.2%, 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 238 230
2023 274 255
2024 316 283
2025 364 315
2026 420 350
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 12600 million. This corresponds to a present value of 10100 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1430 million. Adding in the terminal value gives a total present value of 11500 million.

There are presently 75.8 million outstanding shares, so the intrinsic value per share is 152.36.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 891,500,000
Current Cash 404,100,000
Current Liabilities 500,800,000
Current Debt 2,200,000
Non-Cash Working Capital (NCWC) -11,200,000
Change in NCWC -5,400,000
EBIT 233,600,000
Tax Provision 47,900,000
Depreciation and Amortization 87,200,000
Capital Expenditure -59,800,000
Unlevered Free Cash Flow 206,242,082
Current Assets 917,100,000
Current Cash 461,000,000
Current Liabilities 513,300,000
Current Debt 51,400,000
Non-Cash Working Capital (NCWC) -5,800,000
Change in NCWC -53,000,000
EBIT 198,400,000
Tax Provision 6,000,000
Depreciation and Amortization 79,500,000
Capital Expenditure -69,000,000
Unlevered Free Cash Flow 155,900,000
Current Assets 661,300,000
Current Cash 168,000,000
Current Liabilities 446,100,000
Current Debt 0
Non-Cash Working Capital (NCWC) 47,200,000
Change in NCWC 28,100,000
EBIT 218,700,000
Tax Provision 39,600,000
Depreciation and Amortization 72,100,000
Capital Expenditure -85,800,000
Unlevered Free Cash Flow 189,819,040
Current Assets 645,400,000
Current Cash 212,500,000
Current Liabilities 413,800,000
Current Debt 0
Non-Cash Working Capital (NCWC) 19,100,000
Change in NCWC 17,700,000
EBIT 186,200,000
Tax Provision 42,400,000
Depreciation and Amortization 66,900,000
Capital Expenditure -70,600,000
Unlevered Free Cash Flow 154,058,094
Current Assets 491,900,000
Current Cash 104,800,000
Current Liabilities 385,700,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,400,000
Change in NCWC 3,300,000
EBIT 204,900,000
Tax Provision 55,100,000
Depreciation and Amortization 58,900,000
Capital Expenditure -87,300,000
Unlevered Free Cash Flow 116,797,823
Current Assets 480,500,000
Current Cash 92,400,000
Current Liabilities 390,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,900,000
Change in NCWC -45,100,000
EBIT 211,900,000
Tax Provision 59,500,000
Depreciation and Amortization 53,000,000
Capital Expenditure -85,100,000
Unlevered Free Cash Flow 70,699,746
Current Assets 463,500,000
Current Cash 69,400,000
Current Liabilities 350,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) 43,200,000
Change in NCWC 10,100,000
EBIT 176,200,000
Tax Provision 47,200,000
Depreciation and Amortization 49,800,000
Capital Expenditure -63,600,000
Unlevered Free Cash Flow 115,262,284
Current Assets 451,800,000
Current Cash 112,600,000
Current Liabilities 356,100,000
Current Debt 50,000,000
Non-Cash Working Capital (NCWC) 33,100,000
Change in NCWC 17,300,000
EBIT 900,000
Tax Provision -21,200,000
Depreciation and Amortization 42,400,000
Capital Expenditure -40,800,000
Unlevered Free Cash Flow 19,800,000
Current Assets 399,300,000
Current Cash 93,500,000
Current Liabilities 290,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 15,800,000
Change in NCWC -5,700,000
EBIT 116,000,000
Tax Provision 28,900,000
Depreciation and Amortization 37,500,000
Capital Expenditure -50,200,000
Unlevered Free Cash Flow 63,074,768
Current Assets 455,300,000
Current Cash 181,800,000
Current Liabilities 252,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 21,500,000
Change in NCWC -31,200,000
EBIT 143,000,000
Tax Provision 44,300,000
Depreciation and Amortization 37,200,000
Capital Expenditure -28,500,000
Unlevered Free Cash Flow 67,488,284

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