Somnigroup International Inc. (SGI) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Somnigroup International Inc. stock $29.05, price $67.87, that is 57.2% below the price, quality 45 out of 100. Rating: strongly overvalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 4, 2026.
How to read this chart
60‑month range $19.57 – $97.54 · fair‑value band $20.27 – $45.14 · the $67.87 price screens above the $29.05 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 4, 2026.
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Somnigroup International Inc., together with its subsidiaries, designs, manufactures, distributes, and retails bedding products in the United States and internationally.
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It provides mattresses, foundations and adjustable foundations, and adjustable bases, as well as other products comprising pillows and other accessories under the Tempur-Pedic, Sealy, Stearns & Foster, and Sleepy's brands.
The company operates a portfolio of retail brands, including Mattress Firm, Dreams, Tempur-Pedic retail stores, and SOVA; and licenses Sealy, Tempur, and Stearns & Foster brands, as well as technology and trademarks to other manufacturers.
It sells its products through company-owned stores, online, and call centers; and third-party retailers, including third party distribution, hospitality, and healthcare.
The company was formerly known as Tempur Sealy International, Inc. and changed its name to Somnigroup International Inc. in February 2025. The company was founded in 1846 and is based in Dallas, Texas.
Stock analysis
Somnigroup International Inc. (SGI) currently trades at $67.87, while our model-based Fair Value estimate is $29.05, 57% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of $34.03 per share, and 0 of the 24 models we run sit above the $67.87 price.
Bear case: the Dividend Discount group reads lowest at $8.09, and 24 of the 24 models stay below the price. Data coverage for this calculation is high.
Scenario range: $20.27 (bear) to $45.14 (bull), the price of $67.87 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 45/100 (below-average quality), in the Consumer Cyclical sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Somnigroup International Inc. reported revenue of $7.5B in FY2025 versus $4.9B in FY2021, a compound +11.0%/yr. Reported net income was $384M in FY2025, compounding −11.4%/yr from FY2021.
Key figures
Market cap $14.4B Large · P/E ratio 27.0 · P/S ratio 1.89 · EPS (TTM) $2.51 · Dividend yield 0.9% · Net margin 7.0% · Return on equity 17.5% · Return on assets (EBIT) 13.8%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 30% below its 52-week high and 11% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at 14% fair-value upside, at −57%, SGI screens richer than that median.
Fair Value models
Bear$20.27Fair Value $29.05Bull$45.14
Price $67.87 · Downside -57.2%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($1.59 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, one officer or director bought shares worth $1.9M, on Aug 27, 2026. Over the same period, one person sold shares worth $445,531.
BuyScott L ThompsonCEO & PRESIDENT, Director30,000 shares at $62.84$1.9MAug 27, 2026
SaleSteven H RusingPresident & CEO Mattress Firm6,657 shares at $66.93$445,531May 22, 2026
BuySimon DyerDirector32,000 shares at $93.40$3.0MDec 2, 2025
Plus 10 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.87/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+51.6%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+15.0%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+15.3%
Start year 2020 (pandemic). Over 10 years: +30.5% a year
Revenue growth 20 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+19.4%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
−3.2%
Earnings growth per share plus dividend.
Earnings per share, growth per year−4.1%
Dividend (yield on the price)0.9%
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.15% → 13%
Growth Forecast
Little optimism in the price
The price assumes about as much growth as the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+17.3%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+23.7%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +14.5% a year for the price and +20.8% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (100 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: Limited public data leaves business quality uncertain, with vertical integration from the Leggett & Platt combination potentially supporting margins but integration risks adding pressure amid cautious spending.
Main risk: Regulators could impose conditions on the Leggett & Platt combination or scrutinise access to components and R&D, restricting synergies or supply arrangements for the combined entity.
Bull case: The company could secure regulatory approvals by maintaining open access for third-party customers and demonstrating competitive benefits from integrated innovation.
Bear case: Regulatory restrictions or forced remedies could limit component supply control and delay or reduce expected synergies from the acquisition.
Somnigroup just completed its all-stock combination with Leggett & Platt, broadening its engineered components operations and lifting expected annual run-rate synergies to seventy-five million dollars. Vertical integration may support margins going forward, yet folding in a sizable acquisition amid cautious consumer spending adds execution risks. Will the synergy upside exceed the integration costs and any share dilution?
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Furnishings, Fixtures & Appliances · 297 stocks
P/B4.64× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
P/S (12 months)1.89× · Priciest 25%
Price / free cash flow (fiscal year)22.8× · Pricier than median
EV/EBITDA14.8× · Pricier than median
PEG0.83× · Cheaper than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 26
FUTURE (revenue growth)0· sector 9
PAST (return on equity)70· sector 19
HEALTH (low debt)26· sector 98
DIVIDEND (yield)19· sector 61
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Somnigroup International Inc. Fair Value". https://www.fairvalue-calculator.com/stock/SGI
Frequently asked questions
Is Somnigroup International Inc. (SGI) overvalued or undervalued?
As of Nov 4, 2026, our model estimates a fair value of $29.05 versus a price of $67.87, about 57% lower (overvalued).
What is the fair value of SGI?
Our model-based fair value for Somnigroup International Inc. is $29.05 (as of Nov 4, 2026), built from audited fundamentals. The current price: $67.87.
What is the quality score of SGI?
Somnigroup International Inc. has a Quality Score of 45/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Somnigroup International Inc. (SGI)?
Our model-based price target is the fair value of $29.05 (as of Nov 4, 2026) from 24 valuation models. Cautious scenario $20.27, optimistic scenario $45.14. It is a calculation from audited fundamentals, not an analyst target.
What is the Somnigroup International Inc. stock forecast for 2026?
Our models put fair value at $29.05, about 57% lower versus a price of $67.87 (overvalued). Cautious scenario $20.27, optimistic scenario $45.14. The calculation is refreshed regularly with new filings.
What is the revenue of Somnigroup International Inc. (SGI)?
Somnigroup International Inc. reported trailing-twelve-month revenue of about $7.6B (latest available figure, as of Nov 4, 2026).
Does Somnigroup International Inc. pay a dividend?
Somnigroup International Inc. currently shows a dividend yield of 0.94% relative to its recent price (as of Nov 4, 2026).
What growth is priced into Somnigroup International Inc. (SGI)?
For today's price to be fair in a discounted-cash-flow model, Somnigroup International Inc. would have to grow free cash flow by +17.3 % per year for five years (discount rate 9.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +15.3 % per year. As of Nov 4, 2026.
What discount rate (WACC) does the fair value of SGI use?
Our models discount Somnigroup International Inc. at 9.8 %: a base by market capitalisation (large), damped by beta 1.24, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Somnigroup International Inc. that is +17.3 % per year a year over ten years, using the same discount rate (9.8 %) and the same formula as our fair value.
How much growth has Somnigroup International Inc. (SGI) delivered so far?
Over the past 5 years revenue at Somnigroup International Inc. grew +15.3 % a year. The price currently implies +17.3 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Somnigroup International Inc. (SGI) growing?
The median revenue growth in the sector is +4.6 % a year. That is the yardstick for the growth priced into Somnigroup International Inc. (+17.3 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Somnigroup International Inc. (SGI)?
The free-cash-flow yield on the price is 4.39 %: that much free cash flow Somnigroup International Inc. produces per unit of market value. When it exceeds the discount rate of our models (9.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Somnigroup International Inc. (SGI)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Somnigroup International Inc. it is $29.05 per share (as of Nov 4, 2026), against a price of $67.87. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Somnigroup International Inc. stock overvalued or undervalued in 2026?
As of Nov 4, 2026, SGI trades above its calculated fair value: price $67.87, fair value $29.05, a gap of about −57% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of SGI?
No. The price is what the market pays today ($67.87); the fair value is what the company's own numbers justify ($29.05). For Somnigroup International Inc. the two are $38.82 per share apart. That gap is exactly why we show both numbers side by side.
How much is Somnigroup International Inc. worth?
The market values Somnigroup International Inc. at about $14.4B (market capitalisation, as of Nov 4, 2026). Per share that is $67.87; our models calculate a fair value of $29.05 per share.
What do the bullish and bearish scenarios say about SGI?
Our models span a range for Somnigroup International Inc.: cautious scenario $20.27, base $29.05, optimistic $45.14 per share (as of Nov 4, 2026, price $67.87). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of SGI?
Somnigroup International Inc. trades at a price-to-earnings ratio of 27.0 (as of Nov 4, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $29.05 is built from several models across several years. Excluding one-off items of fiscal year 2025 it is 25.1 (reported for FY2025: 37.6). Median P/E at fiscal year-end, 6 fiscal years (2020 to 2025), reported earnings, FY2025 ex one-offs: 20.5. Other multiples: PEG 0.8, P/B 4.6, P/S 1.9, EV/EBITDA 14.8.
What is the PEG ratio of SGI?
The PEG ratio of Somnigroup International Inc. is 0.83 (P/E divided by earnings growth, as of Nov 4, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Somnigroup International Inc. (SGI)?
Balance-sheet figures for Somnigroup International Inc. (as of Nov 4, 2026): return on equity 17.5%, debt of 1.47 per unit of equity. They feed the Quality Score of 45/100, which measures business quality independently of the share price.
How far is SGI from its 52-week high?
Somnigroup International Inc. trades at $67.87, about 30% below its 52-week high of $97.54 and 11% above the low of $61.33 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $29.05 is for.
Which stocks are comparable to Somnigroup International Inc.?
From the same area (Consumer Cyclical) we also value Midea Group, Gree Electric Appliances, Inc, SharkNinja, Inc, Haier Smart Home Co, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Somnigroup International Inc. stock attractive at the current price?
The data as of Nov 4, 2026: price $67.87, calculated fair value $29.05 (−57%), Quality Score 45/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of SGI calculated?
We run Somnigroup International Inc. through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $29.05, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Somnigroup International Inc. itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Somnigroup International Inc. (SGI)?
The closing price on Nov 5, 2026 was $67.87. Our model-based fair value is $29.05, about 57% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Somnigroup International Inc. right now?
The price sits above even our optimistic bull case ($45.14). The favourable scenario is already priced in. Weak quality (45/100) and above fair value at the same time, the margin of safety is missing on both counts. A fairly wide model range ($20.27 to $45.14) leaves room in how you read the outcome.
Key figures of Somnigroup International Inc.
How large is the market capitalisation of Somnigroup International Inc. (SGI)?
The market capitalisation of Somnigroup International Inc. is $14.4B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Somnigroup International Inc. (SGI)?
The price-to-sales ratio of Somnigroup International Inc. is 1.89 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Somnigroup International Inc. (SGI)?
Earnings per share at Somnigroup International Inc. are $2.51 (price ÷ EPS = P/E 27.0). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Somnigroup International Inc. (SGI)?
The dividend yield of Somnigroup International Inc. is 0.9% (payout 17.0%, on adjusted earnings, reported 25.5%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Somnigroup International Inc. (SGI)?
The net margin of Somnigroup International Inc. is 7.0% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Somnigroup International Inc. (SGI)?
The return on equity (ROE) of Somnigroup International Inc. is 17.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Somnigroup International Inc. (SGI)?
On an EBIT basis the return on assets of Somnigroup International Inc. is 13.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Somnigroup International Inc. (SGI)?
The operating margin of Somnigroup International Inc. is 11.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Somnigroup International Inc. (SGI)?
Revenue at Somnigroup International Inc. is growing −3.0% versus a year earlier (3y avg +15.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Somnigroup International Inc. (SGI)?
Earnings per share at Somnigroup International Inc. are growing +10.6% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Somnigroup International Inc. (SGI) carry?
The net debt of Somnigroup International Inc. is $8.1B (fiscal year 2025, ≈ 12.8 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 4, 2026