Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Bassett Furniture Industries, Incorporated's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from -0.0% to -6.1% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 17, DPO 35, DIO 107). At a 6.8% WACC with mid-year discounting, the terminal value (105% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 2.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $1.42 per share, suggesting BSET is overvalued by 89.9% at the current price of $14.12.
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| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | 8 | 8 | 8 | 7 | 7 | 7 |
| (−) Net Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| (+) D&A | 12 | 12 | 9 | 8 | 8 | 9 |
| EBITDA | 20 | 20 | 17 | 15 | 15 | 16 |
| (−) Tax | 2 | 2 | 2 | 2 | 2 | 2 |
| (−) CapEx | 10 | 10 | 9 | 9 | 8 | 8 |
| (−) ΔWC | 40 | 2 | -3 | -3 | -3 | -3 |
| Free Cash Flow (FCFF) | -32 | 6 | 9 | 7 | 8 | 8 |
| Terminal Value | 188 | |||||
| WACC / Discount Rate | 6.8% | |||||
| Long-term Growth Rate | 2.5% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | -31 | 6 | 7 | 6 | 6 | 135 |
| Enterprise Value | 129 | |||||
| Projection Period | -6 | -4.8% | ||||
| Terminal Value | 135 | 104.8% | ||||
| (−) Current Net Debt | 117 | |||||
| Equity Value | 12 | |||||
| (/) Outstanding Shares | 9 | |||||
| Fair Price | $1.42 | |||||
| WACC \ Terminal Growth Rate | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% |
|---|---|---|---|---|---|
| 4.8% | $8 | $12 | $18 | $27 | $43 |
| 5.8% | $2 | $4 | $7 | $11 | $17 |
| 6.8% | $0 | $0 | $1 | $3 | $6 |
| 7.8% | $0 | $0 | $0 | $0 | $1 |
| 8.8% | $0 | $0 | $0 | $0 | $0 |
Current price: $14.12. Green = undervalued, Red = overvalued.
Using the industry peer median P/E Multiples multiple (trailing + forward), Bassett Furniture Industries, Incorporated (BSET) has a fair value of $6.77 based on 3 comparable companies in the Furnishings, Fixtures & Appliances industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Bassett Furniture Industries, IncorporatedBSET | 123 | 20.2x | — |
| China Automotive Systems, Inc. | 136 | 3.2x | — |
| Kewaunee Scientific Corporation | 106 | 9.7x | 9.7x |
| Virco Mfg. Corporation | 97 | 38.6x | 4.0x |
| Industry Median | 9.7x | 6.8x | |
| (*) Profit after tax | 6 | ||
| Equity Value | 59 | ||
| (/) Outstanding shares | 9 | ||
| Fair Price | $7 | ||
Using the industry peer median EV/EBITDA multiple (trailing + forward), Bassett Furniture Industries, Incorporated (BSET) has a fair value of $6.59 based on 7 comparable companies in the Furnishings, Fixtures & Appliances industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/EBITDA | Forward EV/EBITDA | |
|---|---|---|---|
| Bassett Furniture Industries, IncorporatedBSET | 123 | 13.6x | 12.4x |
| Playboy, Inc. | 156 | 61.4x | 93.4x |
| Torrid Holdings Inc. | 155 | 6.3x | 5.8x |
| China Automotive Systems, Inc. | 136 | 2.6x | 5.2x |
| Traeger, Inc. | 120 | 9.9x | 11.8x |
| Kewaunee Scientific Corporation | 106 | 6.2x | 0.8x |
| Virco Mfg. Corporation | 97 | 12.6x | 8.9x |
| Sleep Number Corporation | 70 | 17.6x | 18.2x |
| Industry Median | 9.9x | 8.9x | |
| (*) EBITDA | 18 | 19 | |
| = Enterprise Value | 175 | 173 | |
| (-) Net Debt | 117 | 117 | |
| Equity Value | 58 | 57 | |
| (/) Outstanding shares | 9 | 9 | |
| Fair Price | $7 | $6 | |
Using the industry peer median EV/Revenue multiple (trailing + forward), Bassett Furniture Industries, Incorporated (BSET) has a fair value of $7.94 based on 10 comparable companies in the Furnishings, Fixtures & Appliances industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing EV/Revenue | Forward EV/Revenue | |
|---|---|---|---|
| Bassett Furniture Industries, IncorporatedBSET | 123 | 0.7x | 0.6x |
| Playboy, Inc. | 156 | 2.6x | 4.0x |
| Torrid Holdings Inc. | 155 | 0.6x | 0.5x |
| Hooker Furnishings Corporation | 143 | 0.6x | 0.4x |
| Medifast, Inc. | 140 | 0.2x | 0.1x |
| China Automotive Systems, Inc. | 136 | 0.3x | 0.5x |
| Traeger, Inc. | 120 | 0.9x | 1.1x |
| Clarus Corporation | 116 | 0.4x | 0.3x |
| Kewaunee Scientific Corporation | 106 | 0.6x | 0.1x |
| Virco Mfg. Corporation | 97 | 0.6x | 0.4x |
| Sleep Number Corporation | 70 | 0.7x | 0.7x |
| Industry Median | 0.6x | 0.5x | |
| (*) Revenue | 335 | 369 | |
| = Enterprise Value | 194 | 177 | |
| (-) Net Debt | 117 | 117 | |
| Equity Value | 78 | 61 | |
| (/) Outstanding shares | 9 | 9 | |
| Fair Price | $9 | $7 | |
Using the PEG framework with historical EPS growth of 8.0% plus 5.7% dividend yield, the company has a fair value of $5.60 based on TTM EPS (FY2025) of $0.70.
| EPS Growth RateHistorical | -21.4% |
| Dividend Yield | +5.7% |
| Adjusted Growth (clamped 8–25%)Clamped | 8.0% |
| Fair P/E | 8.0x |
| TTM EPS (FY2025) | $0.70 |
| Fair Value | $5.60 |
No analyst estimates available.
| Year | Net Income | EPS | YoY |
|---|---|---|---|
| FY2021 | $18.0M | $1.83 | — |
| FY2022 | $65.3M | $2.70 | +47.5% |
| FY2023 | $-3.2M | $-0.36 | -113.3% |
| FY2024 | $-9.7M | $-1.11 | — |
| FY2025 | $6.1M | $0.70 | — |
4Y Historical EPS CAGR: -21.4%
Using the Two-Stage Dividend Discount Model with a Cost of Equity of 10.2% and projected dividend growth of 0.5%, the fair value is $9.71 per share. The DDM range is $7.57 – $14.26 based on sensitivity analysis across Cost of Equity and growth rate assumptions.
| Year | DPS | Payout Ratio | YoY Growth |
|---|---|---|---|
| 2025 | $0.80 | 113.8% | +5.0% |
| 2024 | $0.76 | — | +11.5% |
| 2023 | $0.68 | — | -68.2% |
| 2022 | $2.14 | 30.9% | +174.5% |
| 2021 | $0.78 | 42.6% | — |
| Year | Projected DPS | Growth | Discount Factor | Present Value |
|---|---|---|---|---|
| 2026 | $0.80 | 0.5% | 0.9072 | $0.73 |
| 2027 | $0.81 | 0.5% | 0.8230 | $0.66 |
| 2028 | $0.81 | 0.5% | 0.7467 | $0.60 |
| 2029 | $0.81 | 0.5% | 0.6774 | $0.55 |
| 2030 | $0.82 | 0.5% | 0.6145 | $0.50 |
| Terminal Value | $0.84 DPS | 2.5% | $6.66 |
Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.
| Ke \ Growth | 0.0% | 0.0% | 0.5% | 1.5% | 2.5% |
|---|---|---|---|---|---|
| 8.2% | $13 | $13 | $13 | $14 | $14 |
| 9.2% | $11 | $11 | $11 | $12 | $12 |
| 10.2% | $10 | $10 | $10 | $10 | $11 |
| 11.2% | $8 | $8 | $9 | $9 | $9 |
| 12.2% | $8 | $8 | $8 | $8 | $8 |
Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.