SCS Intrinsic Value

SCS

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	$94.96
Latest Price	$7.18
Relative Value	92% undervalued

Share results:

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Cash Flow (Millions)

Analysis Parameters

New Ticker

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 4.2%. 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	216
2024	247	227
2025	270	238
2026	295	250
2027	323	263

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 9680 million. This corresponds to a present value of 7570 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1200 million. Adding in the terminal value gives a total present value of 8770 million.

There are presently 92.3 million outstanding shares, so the intrinsic value per share is 94.96.

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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