MillerKnoll, Inc.

MLKN

Consumer CyclicalFurnishings, Fixtures & AppliancesNASDAQ

$15.52

Market Cap: $1.06B

MillerKnoll, Inc. (MLKN) Valuation Summary

Updated Apr 16, 2026 22:13

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$15.24 – $236.64	$41.14	+152.9%
Growth Exit 10Y	$28.70 – $337.31	$64.93	+299.1%
EBITDA Exit 5Y	$4.72 – $38.70	$15.78	-3.0%
EBITDA Exit 10Y	$6.17 – $58.26	$28.06	+72.5%
▸ Trading Multiples
P/E	—	N/A	—
EV/EBITDA	$5.06 – $30.27	$7.74	-52.4%
EV/Revenue	$10.45 – $121.79	$34.70	+113.3%
▸ PEG
PEG Fair Value	—	N/A	—
▸ Earnings Power Value
Earnings Power Value	$10.53 – $31.29	$18.48	+13.6%
▸ Dividend Discount
Dividend Discount	—	N/A	—

Valuation History

DCF Analysis

Fair Value

$41.14

Market Price

$15.52

Upside / Downside

+165.1%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project MillerKnoll, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 3.9% to 10.5% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 34, DPO 43, DIO 69). At a 6.4% WACC with mid-year discounting, the terminal value (81% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $41.14 per share, suggesting MLKN is undervalued by 165.1% at the current price of $15.52.

FCFF Present Value Calculation

WACC

6.41%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	176	182	192	212	234	240
(−) Net Interest	57	60	63	69	76	78
(+) D&A	85	91	91	94	101	103
EBITDA	318	333	345	375	411	421

(−) Tax	26	27	29	32	35	36
(−) CapEx	91	95	99	110	121	124
(−) ΔWC	-28	20	28	60	66	68
Free Cash Flow (FCFF)	228	191	189	174	188	193

Terminal Value						4,934
WACC / Discount Rate	6.4%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	221	174	162	140	142	3,617

Enterprise Value	4,456
Projection Period	839	18.8%
Terminal Value	3,617	81.2%

(−) Current Net Debt	1,618

Equity Value	2,838
(/) Outstanding Shares	69

Fair Price	$41.14

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
4.4%	$67	$83	$107	$149	$237
5.4%	$44	$52	$63	$78	$101
6.4%	$30	$35	$41	$49	$59
7.4%	$22	$25	$28	$33	$38
8.4%	$15	$17	$20	$23	$26

Current price: $15.52. Green = undervalued, Red = overvalued.

Fair Value

$64.93

Market Price

$15.52

Upside / Downside

+318.3%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project MillerKnoll, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 3.9% to 4.2% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 34, DPO 43, DIO 69). At a 6.4% WACC with mid-year discounting, the terminal value (73% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $64.93 per share, suggesting MLKN is undervalued by 318.3% at the current price of $15.52.

FCFF Present Value Calculation

WACC

6.41%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	176	182	192	212	234	256	276	295	311	324	332
(−) Net Interest	57	60	63	69	76	83	90	96	101	106	108
(+) D&A	85	91	91	94	101	103	112	121	132	142	146
EBITDA	318	333	345	375	411	442	478	512	544	572	586

(−) Tax	26	27	29	32	35	38	41	44	46	48	50
(−) CapEx	91	95	99	110	121	133	143	153	161	168	172
(−) ΔWC	-28	20	28	60	66	65	61	56	48	39	40
Free Cash Flow (FCFF)	228	191	189	174	188	207	232	260	288	316	324

Terminal Value											8,279
WACC / Discount Rate	6.4%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	221	174	162	140	142	147	155	163	170	175	4,447

Enterprise Value	6,097
Projection Period	1,649	27.1%
Terminal Value	4,447	72.9%

(−) Current Net Debt	1,618

Equity Value	4,478
(/) Outstanding Shares	69

Fair Price	$64.93

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
4.4%	$108	$129	$162	$219	$337
5.4%	$72	$83	$97	$117	$147
6.4%	$52	$58	$65	$74	$87
7.4%	$38	$42	$46	$51	$58
8.4%	$29	$31	$34	$37	$41

Current price: $15.52. Green = undervalued, Red = overvalued.

Fair Value

$15.78

Market Price

$15.52

Upside / Downside

+1.7%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project MillerKnoll, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 3.9% to 10.5% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 34, DPO 43, DIO 69). At a 6.4% WACC with mid-year discounting, the terminal value (69% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 6.0x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $15.78 per share, suggesting MLKN is fairly valued by 1.7% at the current price of $15.52.

FCFF Present Value Calculation

WACC

6.41%

3% – 20%

EV/EBITDA Exit Multiple

6.05x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	176	182	192	212	234	240
(−) Net Interest	57	60	63	69	76	78
(+) D&A	85	91	91	94	101	103
EBITDA	318	333	345	375	411	421

(−) Tax	26	27	29	32	35	—
(−) CapEx	91	95	99	110	121	—
(−) ΔWC	-28	20	28	60	66	—
Free Cash Flow (FCF)	228	191	189	174	188	—

Peers' EBITDA Multiple						6.0x
Terminal Value						2,548
WACC / Discount Rate	6.41%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	221	174	162	140	142	1,868

Enterprise Value	2,707
Projection Period	839	31.0%
Terminal Value	1,868	69.0%

(−) Current Net Debt	1,618
Equity Value	1,089
(÷) Outstanding Shares	69M
Fair Price	$16	+1.7%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	2.0x	4.0x	6.0x	8.0x	10.0x
4.4%	$0	$9	$19	$29	$39
5.4%	$0	$8	$17	$27	$36
6.4%	$0	$7	$16	$25	$34
7.4%	$0	$6	$14	$23	$31
8.4%	$0	$5	$13	$21	$29

Current price: $15.52. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$28.06

Market Price

$15.52

Upside / Downside

+80.8%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project MillerKnoll, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 3.9% to 4.2% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 34, DPO 43, DIO 69). At a 6.4% WACC with mid-year discounting, the terminal value (54% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 6.0x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $28.06 per share, suggesting MLKN is undervalued by 80.8% at the current price of $15.52.

FCFF Present Value Calculation

WACC

6.41%

3% – 20%

EV/EBITDA Exit Multiple

6.05x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	176	182	192	212	234	256	276	295	311	324	332
(−) Net Interest	57	60	63	69	76	83	90	96	101	106	108
(+) D&A	85	91	91	94	101	103	112	121	132	142	146
EBITDA	318	333	345	375	411	442	478	512	544	572	586

(−) Tax	26	27	29	32	35	38	41	44	46	48	—
(−) CapEx	91	95	99	110	121	133	143	153	161	168	—
(−) ΔWC	-28	20	28	60	66	65	61	56	48	39	—
Free Cash Flow (FCF)	228	191	189	174	188	207	232	260	288	316	—

Peers' EBITDA Multiple											6.0x
Terminal Value											3,545
WACC / Discount Rate	6.41%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	221	174	162	140	142	147	155	163	170	175	1,904

Enterprise Value	3,554
Projection Period	1,649	46.4%
Terminal Value	1,904	53.6%

(−) Current Net Debt	1,618
Equity Value	1,936
(÷) Outstanding Shares	69M
Fair Price	$28	+80.8%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	2.0x	4.0x	6.0x	8.0x	10.0x
4.4%	$14	$25	$36	$47	$58
5.4%	$12	$22	$32	$42	$52
6.4%	$10	$19	$28	$37	$46
7.4%	$8	$16	$25	$33	$41
8.4%	$6	$14	$21	$29	$36

Current price: $15.52. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$7.74

Market Price

$15.52

Upside / Downside

-50.1%

Verdict

Overvalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), MillerKnoll, Inc. (MLKN) has a fair value of $7.74 based on 7 comparable companies in the Furnishings, Fixtures & Appliances industry.

EV/EBITDA Valuation — Furnishings, Fixtures & Appliances

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
MillerKnoll, Inc.MLKN	1,071	7.4x	7.4x
Melco Resorts & Entertainment LimitedMLCO	2,404	7.4x	7.4x
Leggett & Platt, IncorporatedLEG	1,516	5.4x	5.6x
La-Z-Boy IncorporatedLZB	1,407	5.8x	5.8x
Carter's, Inc.CRI	1,344	10.2x	10.5x
G-III Apparel Group, Ltd.GIII	1,245	6.0x	5.7x
Biglari Holdings Inc.BH	989	18.3x	8.5x
American Woodmark CorporationAMWD	601	5.3x	4.9x
Industry Median		6.0x	5.8x
(*) EBITDA		364	361
= Enterprise Value		2,203	2,101
(-) Net Debt		1,618	1,618
Equity Value		584	483
(/) Outstanding shares		69	69
Fair Price		$8	$7

Selected Fair Value (avg of trailing + forward)

$7.74

-50.1%

Fair Value

$34.70

Market Price

$15.52

Upside / Downside

+123.6%

Verdict

Undervalued

Using the industry peer median EV/Revenue multiple (trailing + forward), MillerKnoll, Inc. (MLKN) has a fair value of $34.70 based on 10 comparable companies in the Furnishings, Fixtures & Appliances industry.

EV/Revenue Valuation — Furnishings, Fixtures & Appliances

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
MillerKnoll, Inc.MLKN	1,071	0.7x	0.7x
Melco Resorts & Entertainment LimitedMLCO	2,404	1.6x	1.6x
Leggett & Platt, IncorporatedLEG	1,516	0.6x	0.7x
La-Z-Boy IncorporatedLZB	1,407	0.7x	0.7x
Carter's, Inc.CRI	1,344	0.7x	0.7x
G-III Apparel Group, Ltd.GIII	1,245	0.4x	0.4x
Biglari Holdings Inc.BH	989	2.7x	1.3x
Aeva Technologies, Inc.AEVA	929	53.1x	29.2x
American Woodmark CorporationAMWD	601	0.6x	0.6x
ThredUp Inc.TDUP	550	1.8x	1.6x
SES AI CorporationSES	416	18.8x	12.3x
Industry Median		1.2x	1.0x
(*) Revenue		3,670	3,638
= Enterprise Value		4,353	3,671
(-) Net Debt		1,618	1,618
Equity Value		2,734	2,053
(/) Outstanding shares		69	69
Fair Price		$40	$30

Selected Fair Value (avg of trailing + forward)

$34.70

+123.6%

Earnings Power Value

Fair Value

$18.48

Market Price

$15.52

Upside / Downside

+19.1%

Verdict

Undervalued

Using the Earnings Power Value framework with a WACC of 6.4% and normalized earnings of $185.5M, the company has a fair value of $18.48 per share. The EPV range is $10.53 – $31.29 based on WACC sensitivity (4.9% – 7.9%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	185	185	185
(/) WACC	7.9%	6.4%	4.9%
Enterprise Value	2,344	2,893	3,776
(-) Net debt	1,618	1,618	1,618
Equity Value	726	1,275	2,158
(/) Outstanding shares	69	69	69
Fair Price	$10.53	$18.48	$31.29

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.

MillerKnoll, Inc. (MLKN) Valuation Summary

Updated Apr 16, 2026 22:13

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$15.24 – $236.64	$41.14	+152.9%
Growth Exit 10Y	$28.70 – $337.31	$64.93	+299.1%
EBITDA Exit 5Y	$4.72 – $38.70	$15.78	-3.0%
EBITDA Exit 10Y	$6.17 – $58.26	$28.06	+72.5%
▸ Trading Multiples
P/E	—	N/A	—
EV/EBITDA	$5.06 – $30.27	$7.74	-52.4%
EV/Revenue	$10.45 – $121.79	$34.70	+113.3%
▸ PEG
PEG Fair Value	—	N/A	—
▸ Earnings Power Value
Earnings Power Value	$10.53 – $31.29	$18.48	+13.6%
▸ Dividend Discount
Dividend Discount	—	N/A	—

Valuation History

DCF Analysis

Fair Value

$41.14

Market Price

$15.52

Upside / Downside

+165.1%

Verdict

Undervalued

FCFF Present Value Calculation

WACC

6.41%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	176	182	192	212	234	240
(−) Net Interest	57	60	63	69	76	78
(+) D&A	85	91	91	94	101	103
EBITDA	318	333	345	375	411	421

(−) Tax	26	27	29	32	35	36
(−) CapEx	91	95	99	110	121	124
(−) ΔWC	-28	20	28	60	66	68
Free Cash Flow (FCFF)	228	191	189	174	188	193

Terminal Value						4,934
WACC / Discount Rate	6.4%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	221	174	162	140	142	3,617

Enterprise Value	4,456
Projection Period	839	18.8%
Terminal Value	3,617	81.2%

(−) Current Net Debt	1,618

Equity Value	2,838
(/) Outstanding Shares	69

Fair Price	$41.14

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
4.4%	$67	$83	$107	$149	$237
5.4%	$44	$52	$63	$78	$101
6.4%	$30	$35	$41	$49	$59
7.4%	$22	$25	$28	$33	$38
8.4%	$15	$17	$20	$23	$26

Current price: $15.52. Green = undervalued, Red = overvalued.

Fair Value

$64.93

Market Price

$15.52

Upside / Downside

+318.3%

Verdict

Undervalued

FCFF Present Value Calculation

WACC

6.41%

3% – 20%

Terminal Growth

2.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	176	182	192	212	234	256	276	295	311	324	332
(−) Net Interest	57	60	63	69	76	83	90	96	101	106	108
(+) D&A	85	91	91	94	101	103	112	121	132	142	146
EBITDA	318	333	345	375	411	442	478	512	544	572	586

(−) Tax	26	27	29	32	35	38	41	44	46	48	50
(−) CapEx	91	95	99	110	121	133	143	153	161	168	172
(−) ΔWC	-28	20	28	60	66	65	61	56	48	39	40
Free Cash Flow (FCFF)	228	191	189	174	188	207	232	260	288	316	324

Terminal Value											8,279
WACC / Discount Rate	6.4%
Long-term Growth Rate	2.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	221	174	162	140	142	147	155	163	170	175	4,447

Enterprise Value	6,097
Projection Period	1,649	27.1%
Terminal Value	4,447	72.9%

(−) Current Net Debt	1,618

Equity Value	4,478
(/) Outstanding Shares	69

Fair Price	$64.93

Sensitivity Analysis

WACC \ Terminal Growth Rate	1.5%	2.0%	2.5%	3.0%	3.5%
4.4%	$108	$129	$162	$219	$337
5.4%	$72	$83	$97	$117	$147
6.4%	$52	$58	$65	$74	$87
7.4%	$38	$42	$46	$51	$58
8.4%	$29	$31	$34	$37	$41

Current price: $15.52. Green = undervalued, Red = overvalued.

Fair Value

$15.78

Market Price

$15.52

Upside / Downside

+1.7%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project MillerKnoll, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 3.9% to 10.5% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 34, DPO 43, DIO 69). At a 6.4% WACC with mid-year discounting, the terminal value (69% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 6.0x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $15.78 per share, suggesting MLKN is fairly valued by 1.7% at the current price of $15.52.

FCFF Present Value Calculation

WACC

6.41%

3% – 20%

EV/EBITDA Exit Multiple

6.05x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	176	182	192	212	234	240
(−) Net Interest	57	60	63	69	76	78
(+) D&A	85	91	91	94	101	103
EBITDA	318	333	345	375	411	421

(−) Tax	26	27	29	32	35	—
(−) CapEx	91	95	99	110	121	—
(−) ΔWC	-28	20	28	60	66	—
Free Cash Flow (FCF)	228	191	189	174	188	—

Peers' EBITDA Multiple						6.0x
Terminal Value						2,548
WACC / Discount Rate	6.41%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	221	174	162	140	142	1,868

Enterprise Value	2,707
Projection Period	839	31.0%
Terminal Value	1,868	69.0%

(−) Current Net Debt	1,618
Equity Value	1,089
(÷) Outstanding Shares	69M
Fair Price	$16	+1.7%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	2.0x	4.0x	6.0x	8.0x	10.0x
4.4%	$0	$9	$19	$29	$39
5.4%	$0	$8	$17	$27	$36
6.4%	$0	$7	$16	$25	$34
7.4%	$0	$6	$14	$23	$31
8.4%	$0	$5	$13	$21	$29

Current price: $15.52. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$28.06

Market Price

$15.52

Upside / Downside

+80.8%

Verdict

Undervalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project MillerKnoll, Inc.'s cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 3.9% to 4.2% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 34, DPO 43, DIO 69). At a 6.4% WACC with mid-year discounting, the terminal value (54% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 6.0x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $28.06 per share, suggesting MLKN is undervalued by 80.8% at the current price of $15.52.

FCFF Present Value Calculation

WACC

6.41%

3% – 20%

EV/EBITDA Exit Multiple

6.05x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	176	182	192	212	234	256	276	295	311	324	332
(−) Net Interest	57	60	63	69	76	83	90	96	101	106	108
(+) D&A	85	91	91	94	101	103	112	121	132	142	146
EBITDA	318	333	345	375	411	442	478	512	544	572	586

(−) Tax	26	27	29	32	35	38	41	44	46	48	—
(−) CapEx	91	95	99	110	121	133	143	153	161	168	—
(−) ΔWC	-28	20	28	60	66	65	61	56	48	39	—
Free Cash Flow (FCF)	228	191	189	174	188	207	232	260	288	316	—

Peers' EBITDA Multiple											6.0x
Terminal Value											3,545
WACC / Discount Rate	6.41%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	221	174	162	140	142	147	155	163	170	175	1,904

Enterprise Value	3,554
Projection Period	1,649	46.4%
Terminal Value	1,904	53.6%

(−) Current Net Debt	1,618
Equity Value	1,936
(÷) Outstanding Shares	69M
Fair Price	$28	+80.8%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	2.0x	4.0x	6.0x	8.0x	10.0x
4.4%	$14	$25	$36	$47	$58
5.4%	$12	$22	$32	$42	$52
6.4%	$10	$19	$28	$37	$46
7.4%	$8	$16	$25	$33	$41
8.4%	$6	$14	$21	$29	$36

Current price: $15.52. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$7.74

Market Price

$15.52

Upside / Downside

-50.1%

Verdict

Overvalued

EV/EBITDA Valuation — Furnishings, Fixtures & Appliances

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
MillerKnoll, Inc.MLKN	1,071	7.4x	7.4x
Melco Resorts & Entertainment LimitedMLCO	2,404	7.4x	7.4x
Leggett & Platt, IncorporatedLEG	1,516	5.4x	5.6x
La-Z-Boy IncorporatedLZB	1,407	5.8x	5.8x
Carter's, Inc.CRI	1,344	10.2x	10.5x
G-III Apparel Group, Ltd.GIII	1,245	6.0x	5.7x
Biglari Holdings Inc.BH	989	18.3x	8.5x
American Woodmark CorporationAMWD	601	5.3x	4.9x
Industry Median		6.0x	5.8x
(*) EBITDA		364	361
= Enterprise Value		2,203	2,101
(-) Net Debt		1,618	1,618
Equity Value		584	483
(/) Outstanding shares		69	69
Fair Price		$8	$7

Selected Fair Value (avg of trailing + forward)

$7.74

-50.1%

Fair Value

$34.70

Market Price

$15.52

Upside / Downside

+123.6%

Verdict

Undervalued

EV/Revenue Valuation — Furnishings, Fixtures & Appliances

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
MillerKnoll, Inc.MLKN	1,071	0.7x	0.7x
Melco Resorts & Entertainment LimitedMLCO	2,404	1.6x	1.6x
Leggett & Platt, IncorporatedLEG	1,516	0.6x	0.7x
La-Z-Boy IncorporatedLZB	1,407	0.7x	0.7x
Carter's, Inc.CRI	1,344	0.7x	0.7x
G-III Apparel Group, Ltd.GIII	1,245	0.4x	0.4x
Biglari Holdings Inc.BH	989	2.7x	1.3x
Aeva Technologies, Inc.AEVA	929	53.1x	29.2x
American Woodmark CorporationAMWD	601	0.6x	0.6x
ThredUp Inc.TDUP	550	1.8x	1.6x
SES AI CorporationSES	416	18.8x	12.3x
Industry Median		1.2x	1.0x
(*) Revenue		3,670	3,638
= Enterprise Value		4,353	3,671
(-) Net Debt		1,618	1,618
Equity Value		2,734	2,053
(/) Outstanding shares		69	69
Fair Price		$40	$30

Selected Fair Value (avg of trailing + forward)

$34.70

+123.6%

Earnings Power Value

Fair Value

$18.48

Market Price

$15.52

Upside / Downside

+19.1%

Verdict

Undervalued

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	185	185	185
(/) WACC	7.9%	6.4%	4.9%
Enterprise Value	2,344	2,893	3,776
(-) Net debt	1,618	1,618	1,618
Equity Value	726	1,275	2,158
(/) Outstanding shares	69	69	69
Fair Price	$10.53	$18.48	$31.29