DCF Tool

TPX

Tempur Sealy International Inc – Mattress Manufacturing
Tempur Sealy is committed to improving the sleep of more people, every night, all around the world. As a global leader in the design, manufacture and distribution of bedding products, it knows how crucial a good night of sleep is to overall health and wellness. Utilizing over a century of knowledge and industry-leading innovation, it delivers award-winning products that provide breakthrough sleep solutions to consumers in over 100 countries. Its highly recognized brands include Tempur-Pedic®, Sealy® and Stearns & Foster® and its non-branded offerings include value-focused private label and OEM products. Its distinct brands allow for complementary merchandising strategies and are sold through third-party retailers, its Company-owned stores and e-commerce channels. This omni-channel strategy ensures its products are offered where ever and how ever customers want to shop. Lastly, it accepts its global responsibility to serve all stakeholders, its community and environment. It has and is implementing programs consistent with its responsibilities.
Analysis Results
Intrinsic Value $38.02
Latest Price $29.73
Relative Value 22% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Millions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 10.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.5%, 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 367 337
2023 406 342
2024 448 347
2025 496 352
2026 548 357
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 8050 million. This corresponds to a present value of 4810 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1730 million. Adding in the terminal value gives a total present value of 6550 million.

There are presently 172.0 million outstanding shares, so the intrinsic value per share is 38.02.

Financial Statements

The following data was to determine the past cash flows.

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

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.