We’ve recently updated our valuation analysis.

Sleep Number Valuation

Is SNBR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

[object Object] Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SNBR?

Other financial metrics that can be useful for relative valuation.

SNBR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA10.5x
PEG Ratio1x

Price to Earnings Ratio vs Peers

How does SNBR's PE Ratio compare to its peers?

The above table shows the PE ratio for SNBR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average12.9x
HVT Haverty Furniture Companies
5.7xn/aUS$513.9m
AAN Aaron's Company
22.9x45.4%US$386.9m
ARHS Arhaus
14.7x-3.0%US$1.4b
RH RH
8.1x1.0%US$6.7b
SNBR Sleep Number
12.8x13.4%US$678.7m

Price-To-Earnings vs Peers: SNBR is good value based on its Price-To-Earnings Ratio (12.8x) compared to the peer average (12.9x).


Price to Earnings Ratio vs Industry

How does SNBR's PE Ratio compare vs other companies in the US Specialty Retail Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.4%
n/an/an/a

Price-To-Earnings vs Industry: SNBR is expensive based on its Price-To-Earnings Ratio (12.8x) compared to the US Specialty Retail industry average (8.7x)


Price to Earnings Ratio vs Fair Ratio

What is SNBR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SNBR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.8x
Fair PE Ratio10.6x

Price-To-Earnings vs Fair Ratio: SNBR is expensive based on its Price-To-Earnings Ratio (12.8x) compared to the estimated Fair Price-To-Earnings Ratio (10.6x).


Share Price vs Fair Value

What is the Fair Price of SNBR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SNBR ($30.85) is trading below our estimate of fair value ($71.31)

Significantly Below Fair Value: SNBR is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst SNBR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$30.85
US$28.00
-9.2%
7.7%US$31.00US$26.00n/a3
Nov ’23US$27.20
US$28.00
+2.9%
7.7%US$31.00US$26.00n/a3
Oct ’23US$33.81
US$35.67
+5.5%
5.8%US$38.00US$33.00n/a3
Sep ’23US$43.51
US$35.67
-18.0%
5.8%US$38.00US$33.00n/a3
Aug ’23US$46.67
US$35.67
-23.6%
5.8%US$38.00US$33.00n/a3
Jul ’23US$31.15
US$45.50
+46.1%
23.1%US$60.00US$32.00n/a4
Jun ’23US$41.35
US$51.00
+23.3%
10.8%US$60.00US$45.00n/a4
May ’23US$40.56
US$51.00
+25.7%
10.8%US$60.00US$45.00n/a4
Apr ’23US$50.75
US$62.25
+22.7%
13.7%US$75.00US$54.00n/a4
Mar ’23US$62.20
US$68.75
+10.5%
14.0%US$80.00US$55.00n/a4
Feb ’23US$73.02
US$97.25
+33.2%
25.5%US$140.00US$80.00n/a4
Jan ’23US$76.60
US$107.25
+40.0%
19.1%US$140.00US$84.00n/a4
Dec ’22US$76.22
US$107.25
+40.7%
19.1%US$140.00US$84.00US$30.144
Nov ’22US$90.47
US$107.25
+18.5%
19.1%US$140.00US$84.00US$27.204
Oct ’22US$94.54
US$116.50
+23.2%
15.0%US$135.00US$91.00US$33.814
Sep ’22US$92.80
US$116.50
+25.5%
15.0%US$135.00US$91.00US$43.514
Aug ’22US$99.21
US$116.50
+17.4%
15.0%US$135.00US$91.00US$46.674
Jul ’22US$110.27
US$132.50
+20.2%
17.4%US$165.00US$100.00US$31.154
Jun ’22US$112.01
US$132.50
+18.3%
17.4%US$165.00US$100.00US$41.354
May ’22US$111.89
US$132.50
+18.4%
17.4%US$165.00US$100.00US$40.564
Apr ’22US$142.00
US$131.75
-7.2%
18.3%US$165.00US$97.00US$50.754
Mar ’22US$143.04
US$131.75
-7.9%
18.3%US$165.00US$97.00US$62.204
Feb ’22US$104.44
US$74.50
-28.7%
27.8%US$108.00US$52.00US$73.024
Jan ’22US$81.86
US$60.50
-26.1%
28.2%US$80.00US$37.00US$76.604
Dec ’21US$68.92
US$60.50
-12.2%
28.2%US$80.00US$37.00US$76.224

Analyst Forecast: Target price is lower than the current share price.


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