Somnigroup International Inc.

SGI Consumer Cyclical Furnishings Fixtures & Appliances

Somnigroup International Inc.’s revenue for fiscal 2025 (year ended December 2025) was $7.5 billion, up 51.6% from fiscal 2024.

Revenue
−3.05%
EPS
+12.8%
Free cash flow
+21.6%
Total debt
−10.3%

Quarter to June 2026, against a year earlier

69.75 4.40 +6.73%
Market cap
$15.1B
P/E
25.6×
Fwd P/E
21.5×
Dividend yield
1.01%
F-score
5/9
Altman Z
2.59
Beneish M
−2.45
Dividend safety
71/100

Somnigroup International Inc. (SGI) valuation and DCF model

What the price implies · reverse DCF

At $69.75 the price implies free cash flow after share-based pay growing 8.5% a year for ten years.

Free cash flow after share-based pay grew 17.8% a year over the last ten years, 1.3% over the last five. The price asks for less than its ten-year rate. The industry’s median company is priced for 9.3%.

In December 2017 the price assumed 8.4% a year; Somnigroup International Inc. went on to grow free cash flow after share-based pay 16.2% a year to FY2025.

Price implies
8.5%
Last 5 years, reported
1.3%
Last 10 years, reported
17.8%
Industry median implies
9.3%

The headline discounts the last twelve months’ free cash flow after share-based pay at 9.0% for ten years and grows it 2.5% a year after that, the same for every company, so the figure compares across the market (how a reverse DCF works).

The other way round · DCF
The price needs
8.5% a year for ten years
$69.75
today’s price
Its base case
17.8% a year for five years, then 10.7%
$122.29
75.3% above today’s price

Both are growth in free cash flow after share-based pay, discounted at 9.0%, with 2.5% a year after year ten.

Base case on its own ten-year record Somnigroup International Inc.’s own growth, carried forward

Its assumptions

Powerpack lets you start from a scenario and type over any of them.

The base case’s inputs, which Powerpack lets you change
1 · Cash flow to equity
the four quarters to June 2026, from the 10-Q and 10-K filings, before share-based pay

Yearly growth in cash flow. It usually slows as the company matures.

Today’s price implies free cash flow after share-based pay growing 8.5% a year for ten years.

2 · Rates

Cost of equity is the yearly return shareholders require, typically 8–11%. Terminal growth is growth forever after year 10, usually near long-run inflation, 2–3%.

3 · Per share

Diluted shares outstanding. Net debt, under Advanced inputs, is taken off before dividing.

Advanced inputs
negative is net cash
new shares the cash flow does not pay for

Against Somnigroup International Inc.’s own cost of capital: risk-free 4.3% + beta 1.29 × equity premium 4.5% = 10.1% cost of equity; weighted, 10.1%.

Use 10.1%
Equity value $25.89b ▲ above market cap $14.77b
Base case value per share $122.29 equity value ÷ 211.70m shares
Current price $69.75 market price per share
Above today’s price 75.3% upside at the base case’s assumptions

How we got there$10.84b 10 years of cash to equity+$19.35b terminal value−$4.30b net debt=$25.89b equity value÷211.70m shares=$122.29 per share

Valuation against its own history

Today’s multiple against its 5- and 10-year averages and the industry median (Furnishings Fixtures & Appliances).

Multiple Current 5Y avg 10Y avg vs 10Y avg Industry median vs industry 10Y range
P/E 25.63× 27.27× 23.73× 8% above 15.16× 69% above
P/FCF 17.88× 33.62× 25.00× 28% below 9.74× 84% above
P/B 4.37× 17.35× 16.93× 74% below 1.11× 294% above
EV/EBITDA 14.34× 15.23× 13.29× 8% above 7.36× 95% above
EV/Sales 2.37× 2.44× 2.17× 9% above 0.70× 238% above
16.85×26.76×36.66×46.56×10Y avg 23.73×2017201820192020202120222023202420252026

SGI trades at 25.63× P/E, against a 10-year average of 23.73× (range 12.94×–49.05×). That is dearer than 78% of the last 9 year-end readings; re-rating to the average implies $64.57 per share.

Every growth rate on this page is the business’s — its cash flow, FFO or dividend — never its share price’s. A discounted-cash-flow model is only as good as its assumptions. Figures from the 10-K and 10-Q filings. Not investment advice.