Bob's Discount Furniture, Inc.

AI-generated fair value estimate for this company.

Method: 10-year unlevered FCF DCF: FY2026E revenue base of $2.6B (company guidance midpoint of $2,600-2,625M); revenue growth tapering from 8% (Y1) to 4% (Y10), driven by store count growth (214 stores as of Q1 2026, plan of ~20 new stores/year) plus low-single-digit comps; FCF margin ramping from 2% to 6% of revenue as new-store capex intensity declines from the current elevated level (FY2026 capex guidance of $110-115M against a Q1 2026 adjusted EBITDA margin of 6.5%); discount rate of 9.5% (mature but housing/discretionary-cyclical specialty retailer, now with minimal financial leverage); terminal growth of 2.5%; near-zero net debt added at face value (term loan retired in Q1 2026 using IPO proceeds, leaving only a $25M revolver draw against $27.7M cash).

Reasoning: BOBS is a profitable, cash-generative, newly-public retailer with explicit management FY2026 guidance and a clear store-growth roadmap, so a standard FCF DCF anchored to that guidance and recent 10-Q/press-release disclosures is the most defensible and verifiable method; leverage is now minimal since IPO proceeds retired the term loan, so no material net-debt haircut was needed beyond the small revolver balance.