Invesaro

Stocks SGI DCF valuation

DCF valuation

What is Somnigroup International Inc. worth?

With the base-case assumptions below, a discounted cash flow model on Somnigroup International Inc.'s reported free cash flow gives $77.20 per share. The share price was $63.12 on November 10, 2026, 18% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$633.2M
Average free cash flow, last 5 years
$451.9M
Cash
$612.1M
balance sheet of September 30, 2026
Debt
$5.38B
balance sheet of September 30, 2026
Diluted shares, fiscal 2025
209,200,000
Revenue growth per year, last 5 years
15.3%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear10.0%6.0%2.0%10.0%$37.96-40%
Base15.0%9.0%2.5%9.0%$77.20+22%
Bull20.0%11.5%3.0%8.0%$150.27+138%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$106.91$116.18$127.50$141.65$159.85
8.0%$84.60$90.60$97.70$106.22$116.64
9.0%$68.36$72.46$77.20$82.73$89.27
10.0%$56.04$58.96$62.28$66.06$70.42
11.0%$46.41$48.55$50.94$53.64$56.69

Where the presets come from

Base: years 1 to 5 grow at Somnigroup International Inc.'s revenue growth rate over the last 5 fiscal years (15.3% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Somnigroup International Inc. company page