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Steelcase, Inc. – Office Furniture (except Wood) Manufacturing
For over 108 years, Steelcase Inc. has helped create great experiences for the world's leading organizations, across industries. The Company demonstrates this through our family of brands - including Steelcase®, Coalesse®, Designtex®, Turnstone®, Smith System®, Orangebox® and AMQ®. Together, they offer a comprehensive portfolio of architecture, furniture and technology products and services designed to unlock human promise and support social, economic and environmental sustainability. The Company is globally accessible through a network of channels, including approximately 800 Steelcase dealer locations. Steelcase is a global, industry-leading and publicly traded company with fiscal 2020 revenue of $3.7 billion.
Analysis Results
Intrinsic Value $55.07
Latest Price $7.12
Relative Value 87% 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 9.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 9.4%, 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 225 210
2024 247 214
2025 270 218
2026 295 222
2027 323 226
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 6120 million. This corresponds to a present value of 3990 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1090 million. Adding in the terminal value gives a total present value of 5080 million.

There are presently 92.3 million outstanding shares, so the intrinsic value per share is 55.07.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 959,200,000
Current Cash 200,900,000
Current Liabilities 567,200,000
Current Debt 5,100,000
Non-Cash Working Capital (NCWC) 196,200,000
Change in NCWC 150,900,000
EBIT 20,100,000
Tax Provision -2,400,000
Depreciation and Amortization 83,200,000
Capital Expenditure -60,500,000
Unlevered Free Cash Flow 193,700,000
Current Assets 1,045,400,000
Current Cash 489,800,000
Current Liabilities 515,000,000
Current Debt 4,700,000
Non-Cash Working Capital (NCWC) 45,300,000
Change in NCWC 85,500,000
EBIT 98,500,000
Tax Provision -200,000
Depreciation and Amortization 85,200,000
Capital Expenditure -41,300,000
Unlevered Free Cash Flow 227,900,000
Current Assets 1,188,800,000
Current Cash 541,000,000
Current Liabilities 690,900,000
Current Debt 2,900,000
Non-Cash Working Capital (NCWC) -40,200,000
Change in NCWC -136,400,000
EBIT 269,300,000
Tax Provision 45,500,000
Depreciation and Amortization 85,600,000
Capital Expenditure -73,400,000
Unlevered Free Cash Flow 95,127,936
Current Assets 948,600,000
Current Cash 261,300,000
Current Liabilities 595,200,000
Current Debt 4,100,000
Non-Cash Working Capital (NCWC) 96,200,000
Change in NCWC 77,300,000
EBIT 197,300,000
Tax Provision 37,900,000
Depreciation and Amortization 81,600,000
Capital Expenditure -81,400,000
Unlevered Free Cash Flow 229,176,632
Current Assets 853,900,000
Current Cash 283,100,000
Current Liabilities 554,700,000
Current Debt 2,800,000
Non-Cash Working Capital (NCWC) 18,900,000
Change in NCWC -9,200,000
EBIT 168,800,000
Tax Provision 80,800,000
Depreciation and Amortization 65,900,000
Capital Expenditure -87,900,000
Unlevered Free Cash Flow 53,147,739
Current Assets 819,200,000
Current Cash 270,500,000
Current Liabilities 523,400,000
Current Debt 2,800,000
Non-Cash Working Capital (NCWC) 28,100,000
Change in NCWC 25,200,000
EBIT 215,000,000
Tax Provision 71,700,000
Depreciation and Amortization 60,300,000
Capital Expenditure -61,100,000
Unlevered Free Cash Flow 160,869,689
Current Assets 823,900,000
Current Cash 266,000,000
Current Liabilities 557,500,000
Current Debt 2,500,000
Non-Cash Working Capital (NCWC) 2,900,000
Change in NCWC -65,000,000
EBIT 207,900,000
Tax Provision 4,500,000
Depreciation and Amortization 65,700,000
Capital Expenditure -93,400,000
Unlevered Free Cash Flow 109,847,883
Current Assets 855,500,000
Current Cash 244,800,000
Current Liabilities 545,300,000
Current Debt 2,500,000
Non-Cash Working Capital (NCWC) 67,900,000
Change in NCWC 34,900,000
EBIT 200,700,000
Tax Provision 50,900,000
Depreciation and Amortization 59,900,000
Capital Expenditure -97,500,000
Unlevered Free Cash Flow 123,433,357
Current Assets 889,900,000
Current Cash 321,300,000
Current Liabilities 538,200,000
Current Debt 2,600,000
Non-Cash Working Capital (NCWC) 33,000,000
Change in NCWC -12,500,000
EBIT 195,600,000
Tax Provision 59,500,000
Depreciation and Amortization 60,000,000
Capital Expenditure -86,800,000
Unlevered Free Cash Flow 77,236,141
Current Assets 778,600,000
Current Cash 250,900,000
Current Liabilities 484,800,000
Current Debt 2,600,000
Non-Cash Working Capital (NCWC) 45,500,000
Change in NCWC -6,100,000
EBIT 163,300,000
Tax Provision 16,100,000
Depreciation and Amortization 58,300,000
Capital Expenditure -74,000,000
Unlevered Free Cash Flow 93,610,564

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