DCF Tool

SNBR

Sleep Number Corp – Upholstered Household Furniture Manufacturing
at sleep number, our mission places customers at the heart of all we do: improving lives by individualizing sleep experiences. be a part of a company where teams of individuals are valued for their unique talents, perspectives, and experiences. we are the exclusive designer, manufacturer, marketer, retailer and servicer of a complete line of sleep number® beds including our newest addition, the sleepiq kids™ bed. only the sleep number bed offers sleepiq® technology to track and monitor your sleep, so you can make adjustments for your best possible sleep. sleep number also offers a full line of exclusive sleep products including flexfit™ adjustable bases and sleep number® bedding. take a closer look at our company and how we’re improving the lives of our customers and employees: • publicly traded company (nasdaq: scss) since 1998 • annual revenue in 2014 totaled more than $1.16b • headquarters in minneapolis, minnesota, manufacturing and distribution facilities in south carolina a
Analysis Results
Intrinsic Value $106.69
Latest Price $24.40
Relative Value 77% 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 19.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 19.9%, 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 108 99.0
2024 130 108
2025 156 119
2026 187 130
2027 224 142
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 3050 million. This corresponds to a present value of 1770 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 599 million. Adding in the terminal value gives a total present value of 2370 million.

There are presently 22.2 million outstanding shares, so the intrinsic value per share is 106.69.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 197,758,000
Current Cash 1,792,000
Current Liabilities 929,813,000
Current Debt 459,600,000
Non-Cash Working Capital (NCWC) -274,247,000
Change in NCWC 44,799,000
EBIT 67,880,000
Tax Provision 12,285,000
Depreciation and Amortization 67,401,000
Capital Expenditure -69,454,000
Unlevered Free Cash Flow 93,570,967
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

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