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Tempur Sealy International Inc
NYSE:TPX

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Tempur Sealy International Inc
NYSE:TPX
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Price: 68.78 USD 0.5% Market Closed
Market Cap: $14.3B

EV/EBIT

26.3
Current
19%
More Expensive
vs 3-y average of 22.1

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
26.3
=
Enterprise Value
$16.5B
/
EBIT
$627m

Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.

EV/EBIT
26.3
=
Enterprise Value
$16.5B
/
EBIT
$627m

Valuation Scenarios

Tempur Sealy International Inc is trading above its 3-year average

If EV/EBIT returns to its 3-Year Average (22.1), the stock would be worth $57.88 (16% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-52%
Maximum Upside
No Upside Scenarios
Average Downside
32%
Scenario EV/EBIT Value Implied Price Upside/Downside
Current Multiple 26.3 $68.78
0%
3-Year Average 22.1 $57.88
-16%
5-Year Average 17.5 $45.73
-34%
Industry Average 12.5 $32.75
-52%
Country Average 19.6 $51.39
-25%

Forward EV/EBIT
Today’s price vs future ebit

Today's Enterprise Value EBIT Forward EV/EBIT
$16.5B
/
Oct 2024
$627m
=
26.3
Current
$16.5B
/
Dec 2024
$725.2m
=
22.7
Forward
$16.5B
/
Dec 2025
$1.1B
=
15.4
Forward
$16.5B
/
Dec 2026
$1.2B
=
13.4
Forward
$16.5B
/
Dec 2027
$1.4B
=
12.1
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close

Market Distribution

In line with most companies in the United States of America
Percentile
67th
Based on 8 638 companies
67th percentile
26.3
Low
0 — 13.6
Typical Range
13.6 — 27.8
High
27.8 —
Distribution Statistics
the United States of America
Min 0
30th Percentile 13.6
Median 19.6
70th Percentile 27.8
Max 1 826 183.2

Tempur Sealy International Inc
Glance View

Tempur Sealy International Inc. is a testament to strategic evolution within the sleep products industry, weaving a narrative that begins with its origins as separate entities before merging in 2012. The company, renowned for its high-value brands—Tempur-Pedic, known for premium memory foam mattresses, and Sealy, a staple in traditional bedding—thrives on complementing their product lines. Leveraging an extensive research and development program, Tempur Sealy capitalizes on advanced sleep technologies and sustainable manufacturing practices to meet diverse consumer needs. Its innovation-led approach not only enhances product quality but also charts a course through the competitive market landscape, cementing its position as a global leader in the bedding industry. The company’s revenue model is straightforward yet robust, hinging primarily on the sale of mattresses, adjustable bases, pillows, and other bedding products through multiple channels, including retail partnerships, direct-to-consumer models, and hospitality arrangements. By cultivating strong relationships with retailers and capitalizing on branding and customer loyalty, Tempur Sealy ensures a steady flow of income while also expanding its reach in the direct sales domain via e-commerce. Additionally, the company’s strategic acquisitions and partnerships further diversify its portfolio and enhance its distribution capabilities, ensuring growth and adaptability in the ever-evolving global market. Through these concerted efforts, Tempur Sealy not only meets the demand for quality sleep solutions but also translates innovation and scale into sustainable profitability.

TPX Intrinsic Value
69.45 USD
Undervaluation 1%
Intrinsic Value
Price $68.78
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