Sally Beauty Holdings, Inc.

Sally Beauty Holdings, Inc.

SBHยทNYSE

$12.08

-3.7%
Consumer CyclicalSpecialty Retail

Sally Beauty Holdings, Inc. operates as a specialty retailer and distributor of professional beauty supplies. The company operates through two segments, Sally Beauty Supply and Beauty Systems Group. The Sally Beauty Supply segment offers beauty products, including hair color and care products, skin and nail care products, styling tools, and other beauty products for retail customers, salons, and salon professionals. This segment also provides products under third-party brands, such as Wella, Clairol, OPI, Conair, and L'Oreal, as well as exclusive-label brand merchandise. The Beauty Systems Group segment offers professional beauty products, such as hair color and care products, skin and nail care products, styling tools, and other beauty items directly to salons and salon professionals through its professional-only stores, e-commerce platforms, and sales force, as well as through franchised stores under the Armstrong McCall store name. This segment also sells products under third-party brands, such as Paul Mitchell, Wella, Matrix, Schwarzkopf, Kenra, Goldwell, Joico, and Olaplex. As of September 30, 2021, the company operated 4,777 stores, including 134 franchised units in the United States, Puerto Rico, Canada, Mexico, Chile, Peru, the United Kingdom, Ireland, Belgium, France, the Netherlands, Spain, and Germany. It also distributes its products through full-service/exclusive distributors, open-line distributors, direct sales, and mega-salon stores. Sally Beauty Holdings, Inc. was founded in 1964 and is headquartered in Denton, Texas.

At a Glance

Live Snapshot
Market Cap$1.15B
EPS1.9500
P/E Ratio6.19
Earnings Date08/04/2026
Sally Beauty Holdings, Inc.

Sally Beauty Holdings, Inc. Fair Value Envelope

SBH ยท NYSE

Our analysis suggests that SBH has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $12.08, this represents a potential HIDDEN relative to our calculated worth for Sally Beauty Holdings, Inc..

Intrinsic Value
Current Price: $12.08

Owner Earnings Valuation Tool

Warren Buffett's Owner Earnings DCF analysis for intrinsic value calculation

Historical Financial Data

Base year metrics used for projections

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Projection Settings

Forecast period and terminal assumptions

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DCF Valuation Summary

Calculation flow from present value to intrinsic value per share

Present Value$15.7B
+ Cash & Equivalents$149.2M
Firm Value$15.8B
- Debt$1.6B
Equity Value$14.3B
/ Shares Outstanding98,944,792B
DCF Value$144
UNDERVALUED BY 1093%

Owner Earnings Projections

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
$326.5M
$387.9M
$460.8M
$547.4M
$650.3M
$772.5M
$917.7M
$1.1B
$1.3B
$1.5B
Maintenance CapEx
-$24.3M
-$28.8M
-$34.2M
-$40.7M
-$48.3M
-$57.4M
-$68.2M
-$81.0M
-$96.3M
-$114.4M
Owner Earnings
$302.2M
$359.0M
$426.5M
$506.7M
$601.9M
$715.1M
$849.5M
$1.0B
$1.2B
$1.4B
Discount Factor
0.926
0.857
0.794
0.735
0.681
0.630
0.583
0.540
0.500
0.463
Present Value
$279.8M
$307.8M
$338.6M
$372.4M
$409.7M
$450.6M
$495.7M
$545.2M
$599.7M
$659.7M
Terminal Value represents 71.5% of Enterprise Value