$2.45
-14%Sleep Number Corporation, together with its subsidiaries, offers sleep solutions and services in the United States. The company designs, manufactures, markets, retails, and services beds, pillows, sheets, and other bedding products under the Sleep Number name. It also provides adjustable bases under the FlextFit, and smart beds under the Sleep Number 360 brands. The company sells its products directly to consumers through retail, online, phone, and chat as well as through its e-commerce activities. As of January 2, 2022, it operated approximately 648 retail stores in 50 states. The company was formerly known as Select Comfort Corporation and changed its name to Sleep Number Corporation in November 2017. Sleep Number Corporation was founded in 1987 and is headquartered in Minneapolis, Minnesota.
Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation
Base year metrics used for projections
Forecast period and terminal assumptions
Calculation flow from present value to intrinsic value per share
Operating Cash Flow - Maintenance CapEx = Owner Earnings
| Metric | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$1.6M | -$820.8K | -$410.4K | -$205.2K | -$102.6K | -$51.3K | -$25.6K | -$12.8K | -$6.4K | -$3.2K |
| Maintenance CapEx | -$1.4M | -$720.4K | -$360.2K | -$180.1K | -$90.0K | -$45.0K | -$22.5K | -$11.3K | -$5.6K | -$2.8K |
| Owner Earnings | -$3.1M | -$1.5M | -$770.6K | -$385.3K | -$192.6K | -$96.3K | -$48.2K | -$24.1K | -$12.0K | -$6.0K |
| Discount Factor | 0.926 | 0.857 | 0.794 | 0.735 | 0.681 | 0.630 | 0.583 | 0.540 | 0.500 | 0.463 |
| Present Value | -$2.9M | -$1.3M | -$611.7K | -$283.2K | -$131.1K | -$60.7K | -$28.1K | -$13.0K | -$6.0K | -$2.8K |
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