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Tempur Sealy International Inc – Mattress Manufacturing
tempur sealy international, inc. is the world's largest bedding provider. combining a proud history and groundbreaking innovation, the company holds some of the most highly recognized brands in the industry: tempur®, tempur-pedic®, sealy®, sealy posturepedic®, optimum™, and stearns & foster®. to ensure our progress, we’re making commitments to three groups that are critical to our growth. consumers: the best bed and the best sleep of your life we will create the most desired products at every price point, further growing the strong consumer loyalty to our brands. we will continue to be recognized as innovators in our industry. retailers: we are dedicated to your success we will develop a full and balanced portfolio across brands, products and prices, and deliver consumer advertising that will drive sales. we will create a world-class supply chain that is "easiest to do business with"​. our associates: you can expect maximum personal growth we will empower you to do meaningful work and
Analysis Results
Intrinsic Value $150.24
Latest Price $42.50
Relative Value 72% undervalued
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Cash Flow (Billions)
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 27.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 27.4%, 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 (billion) Present value (billion)
2023 0.773 0.714
2024 0.984 0.84
2025 1.25 0.989
2026 1.6 1.16
2027 2.04 1.37
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 33.4 billion. This corresponds to a present value of 20.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.08 billion. Adding in the terminal value gives a total present value of 25.9 billion.

There are presently 172.0 million outstanding shares, so the intrinsic value per share is 150.24.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,195,200,000
Current Cash 69,400,000
Current Liabilities 981,200,000
Current Debt 70,400,000
Non-Cash Working Capital (NCWC) 215,000,000
Change in NCWC 240,500,000
EBIT 680,600,000
Tax Provision 119,000,000
Depreciation and Amortization 127,100,000
Capital Expenditure -306,500,000
Unlevered Free Cash Flow 601,382,259
Current Assets 1,275,600,000
Current Cash 300,700,000
Current Liabilities 1,053,400,000
Current Debt 53,000,000
Non-Cash Working Capital (NCWC) -25,500,000
Change in NCWC 2,000,000
EBIT 912,300,000
Tax Provision 198,300,000
Depreciation and Amortization 113,200,000
Capital Expenditure -123,300,000
Unlevered Free Cash Flow 684,650,133
Current Assets 968,400,000
Current Cash 65,000,000
Current Liabilities 974,800,000
Current Debt 43,900,000
Non-Cash Working Capital (NCWC) -27,500,000
Change in NCWC -126,900,000
EBIT 532,100,000
Tax Provision 102,600,000
Depreciation and Amortization 98,000,000
Capital Expenditure -111,300,000
Unlevered Free Cash Flow 271,224,801
Current Assets 900,200,000
Current Cash 64,900,000
Current Liabilities 773,300,000
Current Debt 37,400,000
Non-Cash Working Capital (NCWC) 99,400,000
Change in NCWC -38,300,000
EBIT 376,500,000
Tax Provision 74,700,000
Depreciation and Amortization 89,700,000
Capital Expenditure -88,200,000
Unlevered Free Cash Flow 233,769,491
Current Assets 805,400,000
Current Cash 45,800,000
Current Liabilities 669,000,000
Current Debt 47,100,000
Non-Cash Working Capital (NCWC) 137,700,000
Change in NCWC 76,700,000
EBIT 256,300,000
Tax Provision 49,600,000
Depreciation and Amortization 87,100,000
Capital Expenditure -73,600,000
Unlevered Free Cash Flow 269,454,666
Current Assets 607,400,000
Current Cash 41,900,000
Current Liabilities 576,900,000
Current Debt 72,400,000
Non-Cash Working Capital (NCWC) 61,000,000
Change in NCWC -69,600,000
EBIT 302,800,000
Tax Provision 47,700,000
Depreciation and Amortization 81,300,000
Capital Expenditure -129,100,000
Unlevered Free Cash Flow 108,735,668
Current Assets 671,500,000
Current Cash 65,700,000
Current Liabilities 545,500,000
Current Debt 70,300,000
Non-Cash Working Capital (NCWC) 130,600,000
Change in NCWC 6,900,000
EBIT 415,500,000
Tax Provision 86,800,000
Depreciation and Amortization 73,300,000
Capital Expenditure -62,400,000
Unlevered Free Cash Flow 305,995,375
Current Assets 809,100,000
Current Cash 153,900,000
Current Liabilities 713,000,000
Current Debt 181,500,000
Non-Cash Working Capital (NCWC) 123,700,000
Change in NCWC -108,300,000
EBIT 309,100,000
Tax Provision 125,400,000
Depreciation and Amortization 71,400,000
Capital Expenditure -65,900,000
Unlevered Free Cash Flow 12,591,154
Current Assets 766,400,000
Current Cash 62,500,000
Current Liabilities 538,300,000
Current Debt 66,400,000
Non-Cash Working Capital (NCWC) 232,000,000
Change in NCWC -12,600,000
EBIT 276,300,000
Tax Provision 64,900,000
Depreciation and Amortization 76,300,000
Capital Expenditure -47,500,000
Unlevered Free Cash Flow 189,973,584
Current Assets 727,500,000
Current Cash 81,000,000
Current Liabilities 441,500,000
Current Debt 39,600,000
Non-Cash Working Capital (NCWC) 244,600,000
Change in NCWC -185,100,000
EBIT 243,800,000
Tax Provision 49,100,000
Depreciation and Amortization 74,600,000
Capital Expenditure -40,000,000
Unlevered Free Cash Flow -220,156
Current Assets 821,100,000
Current Cash 179,300,000
Current Liabilities 212,100,000
Current Debt 0
Non-Cash Working Capital (NCWC) 429,700,000
Change in NCWC 344,776,000
EBIT 248,300,000
Tax Provision 122,400,000
Depreciation and Amortization 36,300,000
Capital Expenditure -50,500,000
Unlevered Free Cash Flow 446,276,000

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