Discounted Cash Flow (DCF) Analysis Levered
Sleep Number Corporation (SNBR)
$17.88
-0.26 (-1.43%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 1,531.58 | 1,698.35 | 1,883.29 | 2,088.37 | 2,315.77 | 2,567.94 | 2,847.57 | 3,157.65 | 3,501.50 | 3,882.78 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 131.54 | 189.16 | 185.75 | 205.98 | 228.41 | 253.28 | 280.86 | 311.45 | 345.36 | 382.97 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -45.51 | -59.24 | -60.83 | -67.45 | -74.80 | -82.94 | -91.97 | -101.99 | -113.09 | -125.41 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 86.02 | 129.92 | 124.92 | 138.53 | 153.61 | 170.34 | 188.89 | 209.46 | 232.26 | 257.56 |
Weighted Average Cost Of Capital
| Share price | $ 17.88 |
|---|---|
| Beta | 1.815 |
| Diluted Shares Outstanding | 24.95 |
| Cost of Debt | |
| Tax Rate | 25.13 |
| After-tax Cost of Debt | 1.59% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 12.178 |
| Total Debt | 896.01 |
| Total Equity | 446.05 |
| Total Capital | 1,342.06 |
| Debt Weighting | 66.76 |
| Equity Weighting | 33.24 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 1,531.58 | 1,698.35 | 1,883.29 | 2,088.37 | 2,315.77 | 2,567.94 | 2,847.57 | 3,157.65 | 3,501.50 | 3,882.78 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 131.54 | 189.16 | 185.75 | 205.98 | 228.41 | 253.28 | 280.86 | 311.45 | 345.36 | 382.97 |
| Capital Expenditure | -45.51 | -59.24 | -60.83 | -67.45 | -74.80 | -82.94 | -91.97 | -101.99 | -113.09 | -125.41 |
| Free Cash Flow | 86.02 | 129.92 | 124.92 | 138.53 | 153.61 | 170.34 | 188.89 | 209.46 | 232.26 | 257.56 |
| WACC | ||||||||||
| PV LFCF | 138.02 | 145.61 | 153.61 | 162.06 | 170.97 | 180.37 | 190.29 | 200.75 | ||
| SUM PV LFCF | 904.43 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.11 |
| Free cash flow (t + 1) | 262.71 |
| Terminal Value | 8,447.19 |
| Present Value of Terminal Value | 6,584.04 |
Intrinsic Value
| Enterprise Value | 7,488.47 |
|---|---|
| Net Debt | 894.22 |
| Equity Value | 6,594.25 |
| Shares Outstanding | 24.95 |
| Equity Value Per Share | 264.33 |