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DCF Valuation
Base-case fair value
$36.43
Intrinsic $48.57 · 25% MOS
Current price: $15.20
Base-case summary
Our base-case DCF for HOOKER FURNISHINGS Corp (HOFT) projects 10 years of free cash flow growth at 4.9% for years 1–5 and 2.5% for years 6–10, anchored to 4.9% historical FCF growth, then applies a 2.5% perpetual growth rate and a 8.0% discount rate. Starting from the 3-year average of positive free cash flow ($26M) — TTM FCF was negative, this produces an intrinsic value of $48.57 per share. A 25% safety margin gives a fair value of $36.43, suggesting the stock is currently 140% undervalued against the $15.20 market price.
See 3 scenarios side by side
Conservative, Base, and Optimistic fair values, plus the sensitivity matrix and FCF history. Free account.
TTM FCF is negative ($0). Projecting from a negative base produces nonsensical results, so this model uses the 3-year average of positive FCF ($26M) as the base instead. Treat this valuation as a rough estimate — it assumes a return to historical profitability.
Model inputs
Free Cash Flow (3yr avg)
$26M
Cash & equivalents
$11M
Total debt
$24M
Shares outstanding
11M