DCF Tool

SNBR

Sleep Number Corp – Upholstered Household Furniture Manufacturing
Individuality is core to Sleep Number. The purpose driven company is comprised of over 4,300 passionate team members who are dedicated to the mission of improving lives by individualizing sleep experiences. The 360® smart beds provide each sleeper with adjustable, individualized comfort for proven quality sleep. It improved nearly 13 million lives as strives to improve society's wellbeing through higher quality sleep. Sleep science and data are the foundation of our innovations. The award-winning 360 smart beds bene?t from our proprietary SleepIQ® technology - learning from nearly 8 billion hours of highly accurate sleep data - to provide comfort and individualized sleep health insights, including your daily SleepIQ® score. For life-changing sleep, visit SleepNumber.com or one of othe 600 Sleep Number® stores.
Analysis Results
Intrinsic Value $101.77
Latest Price $47.43
Relative Value 53% 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 17.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 17.5%, 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 81.6 75.8
2023 96.0 82.8
2024 113 90.4
2025 133 98.7
2026 156 108
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2810 million. This corresponds to a present value of 1810 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 456 million. Adding in the terminal value gives a total present value of 2260 million.

There are presently 22.2 million outstanding shares, so the intrinsic value per share is 101.77.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 207,621,000
Current Cash 2,389,000
Current Liabilities 906,778,000
Current Debt 382,500,000
Non-Cash Working Capital (NCWC) -319,046,000
Change in NCWC -84,863,000
EBIT 193,536,000
Tax Provision 33,545,000
Depreciation and Amortization 60,394,000
Capital Expenditure -66,900,000
Unlevered Free Cash Flow 67,503,481
Current Assets 181,804,000
Current Cash 4,243,000
Current Liabilities 655,944,000
Current Debt 244,200,000
Non-Cash Working Capital (NCWC) -234,183,000
Change in NCWC -29,184,000
EBIT 184,896,000
Tax Provision 36,783,000
Depreciation and Amortization 61,563,000
Capital Expenditure -39,073,000
Unlevered Free Cash Flow 139,553,637
Current Assets 160,368,000
Current Cash 1,593,000
Current Liabilities 594,774,000
Current Debt 231,000,000
Non-Cash Working Capital (NCWC) -204,999,000
Change in NCWC -65,176,000
EBIT 112,095,000
Tax Provision 18,663,000
Depreciation and Amortization 61,866,000
Capital Expenditure -59,239,000
Unlevered Free Cash Flow 28,731,448
Current Assets 150,857,000
Current Cash 1,612,000
Current Liabilities 488,668,000
Current Debt 199,600,000
Non-Cash Working Capital (NCWC) -139,823,000
Change in NCWC -6,774,000
EBIT 92,428,000
Tax Provision 16,982,000
Depreciation and Amortization 61,966,000
Capital Expenditure -45,515,000
Unlevered Free Cash Flow 83,963,597
Current Assets 152,491,000
Current Cash 3,651,000
Current Liabilities 306,389,000
Current Debt 24,500,000
Non-Cash Working Capital (NCWC) -133,049,000
Change in NCWC -34,450,000
EBIT 91,915,000
Tax Provision 25,961,000
Depreciation and Amortization 61,291,000
Capital Expenditure -59,829,000
Unlevered Free Cash Flow 32,715,908
Current Assets 138,327,000
Current Cash 11,609,000
Current Liabilities 225,317,000
Current Debt 0
Non-Cash Working Capital (NCWC) -98,599,000
Change in NCWC -44,015,000
EBIT 76,650,000
Tax Provision 24,516,000
Depreciation and Amortization 57,172,000
Capital Expenditure -57,852,000
Unlevered Free Cash Flow 7,207,506
Current Assets 197,926,000
Current Cash 27,561,000
Current Liabilities 224,949,000
Current Debt 0
Non-Cash Working Capital (NCWC) -54,584,000
Change in NCWC 21,477,000
EBIT 75,096,000
Tax Provision 24,911,000
Depreciation and Amortization 47,630,000
Capital Expenditure -85,586,000
Unlevered Free Cash Flow 33,816,304
Current Assets 232,595,000
Current Cash 121,604,000
Current Liabilities 187,052,000
Current Debt 0
Non-Cash Working Capital (NCWC) -76,061,000
Change in NCWC -18,036,000
EBIT 101,746,000
Tax Provision 34,134,000
Depreciation and Amortization 39,809,000
Capital Expenditure -76,594,000
Unlevered Free Cash Flow 12,912,014
Current Assets 189,539,000
Current Cash 110,382,000
Current Liabilities 137,182,000
Current Debt 0
Non-Cash Working Capital (NCWC) -58,025,000
Change in NCWC 3,637,000
EBIT 90,281,000
Tax Provision 30,930,000
Depreciation and Amortization 30,811,000
Capital Expenditure -76,811,000
Unlevered Free Cash Flow 17,236,089
Current Assets 210,578,000
Current Cash 139,179,000
Current Liabilities 133,061,000
Current Debt 0
Non-Cash Working Capital (NCWC) -61,662,000
Change in NCWC 2,468,000
EBIT 125,530,000
Tax Provision 41,911,000
Depreciation and Amortization 20,401,000
Capital Expenditure -51,593,000
Unlevered Free Cash Flow 52,965,428

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.