Discounted Cash Flow (DCF) Analysis Levered

Tempur Sealy International, Inc. (TPX)

$32.08

-0.01 (-0.03%)
All numbers are in Millions, Currency in USD
Stock DCF: 43.58 | 32.08 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 2,754.402,702.903,1063,6764,930.805,738.596,678.727,772.879,046.2710,528.28
Revenue (%)
Operating Cash Flow 222.90183.10312.80655723.10659.03767892.651,038.891,209.08
Operating Cash Flow (%)
Capital Expenditure -67-73.60-88.20-111.30-123.30-155.21-180.64-210.23-244.67-284.76
Capital Expenditure (%)
Free Cash Flow 155.90109.50224.60543.70599.80503.82586.36682.42794.21924.33

Weighted Average Cost Of Capital

Share price $ 32.08
Beta 1.738
Diluted Shares Outstanding 212.30
Cost of Debt
Tax Rate 24.21
After-tax Cost of Debt 1.76%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.712
Total Debt 2,860.20
Total Equity 6,810.58
Total Capital 9,670.78
Debt Weighting 29.58
Equity Weighting 70.42
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 2,754.402,702.903,1063,6764,930.805,738.596,678.727,772.879,046.2710,528.28
Operating Cash Flow 222.90183.10312.80655723.10659.03767892.651,038.891,209.08
Capital Expenditure -67-73.60-88.20-111.30-123.30-155.21-180.64-210.23-244.67-284.76
Free Cash Flow 155.90109.50224.60543.70599.80503.82586.36682.42794.21924.33
WACC
PV LFCF 391.51418.91448.23479.60513.17
SUM PV LFCF 2,663.65

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.77
Free cash flow (t + 1) 942.81
Terminal Value 13,926.33
Present Value of Terminal Value 9,147.26

Intrinsic Value

Enterprise Value 11,810.91
Net Debt 2,559.50
Equity Value 9,251.41
Shares Outstanding 212.30
Equity Value Per Share 43.58