Sleep Number Corporation, formerly known as Select Comfort Corporation, provides sleep solutions and services in the United States. It designs, manufactures, markets, and retails in beds and bedding accessories, such as mattresses, adjustable bases, pillows, sheets, and other bedding products under the Sleep Number brand name. The company was founded in 1987 and is based in Minneapolis, Minnesota.
SNBR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Sleep Number Corp. To summarize, we found that Sleep Number Corp ranked in the 72th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for SNBR, they are:
Sleep Number Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than just 23.22% of tickers in our DCF set.
SNBR's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than just 23.22% of tickers in our DCF set.
Relative to other stocks in its sector (Consumer Cyclical), Sleep Number Corp has a reliance on debt greater than just 23.07% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Consumer Cyclical that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SNBR, try LEE, SIG, SCVL, QNST, and GM.
Serta Simmons Bedding is teaming up with HeiQ, a Swiss firm specializing in textile innovation, to apply virus-killing technology to mattresses. Chairman & CEO David Swift joins The Final Round to discuss how the company plans on applying this tech to all hospitality mattresses and its retail portfolio, as well as competition and what’s ahead for the bedding industry.
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