Cleveland Research Company 2016 Stock Pitch Competition- Tempur Selay Finalist

1

NYSE: TPX

Nick Olmstead | Colin Nguyen | Kyle Gardner | Alex Liscum

Overview & Thesis 3

Industry Outlook 6

Key Drivers 8

Valuation

Final Thoughts

Appendix

1517

18

Overview & Thesis

Industry Outlook Key Drivers Valuation Final Thoughts Appendix 3

Investment Thesis

Expanding the market particularly in the luxury and e-commerce segmentsRestructuring of management; led by H partners will propel the company forwardStrong brand reputation will perpetuate growth in new segments and sustain success in established areas

We recommend Tempur-Sealy as a BUY with a 12 month price target of $74.00 representing a 26.97% upside from their current price

4Overview & Thesis

Industry Outlook Key Drivers Valuation Final Thoughts Appendix

Headquartered in Lexington, Kentucky Develops, manufactures, and markets mattresses, foundations, pillows and other productsOperating in over 100 countries worldwide

Description & Operations Brands

Manufacturing Distribution

Company Overview

Sources: Company 10-K, Investor Presentation, Earnings Call

Highly Recognized brands include Tempur, Sealy, Tempur-Pedic, Sealy Posturepedic, Stearns & Foster, and Cocoon by SealyBrands are complementary and fully cover the market

26 company operated worldwide manufacturing facilitiesBedding represents 91.6% of net salesOther products such as pillows, mattress covers, sheets, cushions, etc. make up 8.4% of net sales

45% of sales come from bedding specialty retailFurniture retail comprises 30%Department stores make up 10%Direct-to-customer growing at twice the rate of third-party retail

5Overview & Thesis


Higher ASP from growing luxury mattress demandEmerging e-commerce presenceRise of specialty bedding retail

Trends Market Share

Consolidation Non U.S Mattress Sales

Industry Overview

Sources: TheRobinReport

Serta and Simmons in 2012 Tempur-Pedic and Sealy in 2012Mattress Firm and Sleepy’s in 2015

2009 2010 2011 2012 2013 201411

12

13

14

15

16

17

18

12.8

14

15.7 1616.6

17.3

Years

Tot

al S

ales

in B

illio

ns o

f $

32%

39%

24%

5%

Tempur SealySimmonOthersSelect Comfort

Overview & Thesis


Porter’s Five Forces Analysis

Power of Suppliers: LowCommodity inputs with low

switching costs

Power of Customers: Medium

Few alternative products, fairly dependent on economic

climate

Threats of Entrants: Medium

Economies of scale, brand identity, e-commerce

Threat of Substitutes: Low

Few alternatives

Rivalry Among Competitors: MediumFew major players, rely

heavily on innovation and brand loyalty

7Overview & Thesis


Per Capita Disposable Income Value of Residential Construction

World Price of Crude World Price of Steel

Industry Tailwinds

Source: US-Mattress.com Survey Results

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020300350400450500550600650700750

Years

Val

ue in

Bill

ions

of $

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2030405060708090

100110

Year

Pric

e Pe

r B

arre

l

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 20223400035000360003700038000390004000041000420004300044000

Years

Per

Cap

ita D

ispo

sabl

e In

com

e

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019150

160

170

180

190

200

210

220

Year

Inde

x

8Overview & Thesis

Industry Dynamics Key Drivers Valuation Final Thoughts Appendix

Full Coverage of Market Segmented Revenue

Recently launched “bed in a box” brand to challenge Casper and other e-commerce startupsDirect to consumer is Tempur-Sealy’s fastest growing channel

Brand Portfolio

Cocoon

Luxury

60%

Mid Price25%

Value15%

9Overview & Thesis


Bed in a Box Luxury

Expanded Markets

Sources: The Age Curve, Investor Presentation

Segment has seen disruptions from Casper and other bed in a box, ecommerce retailersDirect to consumer is the fastest growing channel for Tempur-Sealy

Growth driven by aging population and higher per capita disposable incomesLatex mattresses…all natural mattresses are meeting the demands of Boomers who can’t sleep and driving average-unit sale prices through the roof”“The bedding and mattress business is the bright spot in the overall furniture business”

-- Kenneth W. Gronbach, author of The Age Curve: How to Profit from the Coming Demographic Storm

10.00%

15.00%

20.00%

25.00%

Age 18-34 Brand Preference

Tempur-Pedic Sealy SimonsSerta Other

10Overview & Thesis


Brands Most Likely to be Bought Brand Preference by Age Group

Sleep Quality by Gender Advertising Investments

Strong Brand Reputation

Sources: US-Mattress.com Survey Results, Investor Presentation

Select Comfort Simon Serta Tempur Sealy0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%50.00%

14%

29%

44%

Brands

% o

f Con

sum

er P

refe

ranc

e

Tempur-Pedic

Sealy Serta Simmons Other2

3

4

5

Men Women

Brands

ExcellentAverage

Poor

2013 2014 20150

50100150200250300350400

274327

361

Year

Adv

ertis

ing

in m

illio

ns o

f $

18 - 34 35 -52 55+10.00%

15.00%

20.00%

25.00%

Tempur-Pedic Sealy SimonsSerta Other

Age Group

Bra

nd P

refe

renc

e

11Overview & Thesis


Old Management New Management

Scott Thompson H Partners

Management & H Partners

Sources: Forbes, H Partners

TPX underperformed peersCEO paid $18M to oversee $1.6B loss of equity in a 3 year span2012-2015 Long-term earnings expectations declined by 60%2012: Stock dropped 40%

CEO: Scott Thompson2 Board Members were replacedAspirational Plan

Previously CEO of Dollar Thrifty until purchased by Hertz in 2012Founder of Group 1 Automotive; NYSE and Fortune 500 Company

New York Activist Hedge FundCEO: Rehan Jaffer

Fund went from $15M to $1.6B in a decadeProtégé of Dan Loeb at Third PointSuccessful turnaround of Six Flags

Overview & Thesis


Management Aspirational Plan

Source: H Partners Presentation

Goal: Create significant stockholder value

Over 1,000,000 PRSUs granted to 12 executives + 200 additional employees IF… EBITDA increases 200M by 2017 (current: 400M) All PRSUs will vest if EBITDA of $650 is achieved for 2017 One third will vest if completed by 2018

13Overview & Thesis


Strengths Weaknesses

Opportunities Threats

SWOT Analysis

Source: Investor Presentation, 10-K

Strong management teamStrong brand reputationFree-cash-flow

Cyclical industryReliance on top customersLeverage profile

Global industry growthBed in a box segmentFavorable U.S macroeconomic conditionsAging U.S population

E-CommerceDanish tax issueExchange rates

14Overview & Thesis


Comparable Companies Analysis Football Field

DCF (Perpetuity & EBITDA Methods) Sensitized Valuations

Valuation

EV/Sales, P/E, and EV/EBITDA were used to derive an implied share priceImplied share price range of $47.68-$73.53

WACC of 8.3% was usedPerpetuity growth was assumed to occur at 2.0% EBITDA Exit Multiple was calculated to be 13.4x

Exit Multiple

Perpetuity

Comparables - EV/EBITDA

Comparables - EV/Sales

Comparables - P/E

$40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00

Perpetuity Growth Rate $78.33 1.7% 1.9% 2.0% 2.2% 2.3%

WACC

9.0% $64.48 $65.90 $67.39 $68.93 $70.558.8% $67.61 $69.15 $70.76 $72.45 $74.218.5% $70.98 $72.65 $74.40 $76.23 $78.158.3% $74.61 $76.43 $78.33 $80.34 $82.448.0% $78.52 $80.51 $82.60 $84.79 $87.107.8% $82.76 $84.94 $87.23 $89.64 $92.197.5% $87.37 $89.77 $92.29 $94.95 $97.77

Exit Multiple $89.17 12.2x 12.8x 13.4x 14.0x 14.6x

WACC

9.0% $78.18 $81.99 $85.80 $89.60 $93.418.8% $79.20 $83.05 $86.91 $90.76 $94.618.5% $80.24 $84.14 $88.03 $91.93 $95.828.3% $81.29 $85.23 $89.17 $93.11 $97.058.0% $82.35 $86.34 $90.33 $94.31 $98.307.8% $83.43 $87.47 $91.50 $95.53 $99.567.5% $84.53 $88.61 $92.69 $96.77 $100.85

15Overview & Thesis


Perpetuity Growth Method Calculation of WACC

EBITDA Exit Multiple Method Comparable Companies Analysis

Valuation

Perpetuity MethodPresent Value of Projection Period $1,207

2020 Free Cash Flow $367Perpetuity Growth Rate 2.0%

Terminal Value $7,142Years 5.0

Present Value of Terminal Value $4,800

Total Enterprise Value $6,007 Less: Debt $1,273

Plus: Cash $154Equity Value $4,888Per Share Price $78.33

WACC CalculationTotal Debt 1,273 25.8%

Totel Equity 3,671 74.2%

4,944 1Beta 1.38 Risk free Rate 1.72%Market Risk Premium 6.00%

Cost of Equity 10.00%Pre-tax Cost of Debt 5.05%Tax Rate 35%

Cost of Debt 3.28% WACC 8.3%

EBITDA Exit Multiple MethodPresent Value of Projection Period $1,207

2020 EBITDA $610EBITDA Multiple 13.4x

Terminal Value $8,148Years 5.0

Present Value of Terminal Value $5,477

Total Enterprise Value $6,684

Equity Value $5,564Per Share Price $89.17

Name Ticker Market Cap EVEV/EBITDA

LTM 2014A 2015ATempur Sealy TPX $3,584.2 $4,897.5 12.6x 13.4x 15.0x

Mattress Firm Holding CorpMFRM $1,551.9 $2,241.1 8.1x 12.8x 19.8x

Select Comfort Corp SCSS $907.7 $871.5 6.5x 8.4x 8.8xTuesday Morning Corp TUES $353.9 $318.6 11.4x 15.2x 15.0x

Armstrong World Industries AWI $2,309.5 $3,067.7 9.5x 12.9x 10.8xLeggett & Platt Inc LEG $6,567.0 $7,274.7 10.3x 12.4x 12.4x

Overview & Thesis


Final ThoughtsMain Points

Expanding the market particularly in the luxury and e-commerce segmentsRestructuring of management; led by H partners will propel the company forwardStrong brand reputation will perpetuate growth in new segments and sustain success in established areas

We recommend Tempur-Sealy as a BUY with a 12 month price target of $74.00 representing a 26.97% upside from their current price

Appendix

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Tempur SealyIncome Statement ($ in Millions)

Fiscal Year Ended Dec. 30 2014A 2015A 2016E 2017E 2018E 2019E 2020E

Net sales $2,990 $3,151 $3,322 $3,503 $3,694 $3,896 $4,110Cost of sales 1,839 1,902 2,003 2,109 2,221 2,340 2,465Gross profit $1,150 $1,249 $1,319 $1,394 $1,473 $1,557 $1,645

Selling and marketing expenses $620 $648 $674 $701 $735 $768 $802General, administrative and other expenses 281 322 316 326 332 347 358Equity income in earnings of unconsolidated affiliates (8) (12) (12) (12) (12) (12) (12)Royalty income, net of royalty expense (18) (18) (18) (18) (18) (18) (18)Operating (loss) income $276 $309 $359 $398 $436 $473 $517Other expense, net:

Interest expense, net $92 $96 $95 $93 $87 $94 $91Loss on disposal, net 23 0 0 0 0 0 0Other expense (income), net (14) 13 0 0 0 0 0

Total other expense 101 109 109 109 109 109 109Income before income taxes $175 $200 $250 $289 $327 $364 $408

Income tax provision 65 125 76 88 100 111 124Net income before non-controlling interest $110 $75 $174 $201 $227 $253 $283

Less: net income attributable to non-controlling interest 1 1 1 1 1 1 1Net income attributable to Tempur Sealy International, Inc. $109 $74 $173 $199 $226 $251 $282

Earnings per common share:Basic (in dollars per share) $1.79 $1.19 $2.80 $3.23 $3.66 $4.08 $4.57Diluted (in dollars per share) $1.75 $1.17 $2.76 $3.19 $3.61 $4.02 $4.51

Weighted average common shares outstanding:Basic (in shares) 60.80 61.70 61.70 61.70 61.70 61.70 61.70Diluted (in shares) 62.10 62.60 62.60 62.60 62.60 62.60 62.60

Assumptions:Net sales growth 5.4% 5.4% 5.4% 5.5% 5.5% 5.5%Cost of sales as a % of Net sales 61.5% 60.4% 60.3% 60.2% 60.1% 60.0% 60.0%Selling and marketing expenses as a % od Net sales 20.7% 20.6% 20.3% 20.0% 19.9% 19.7% 19.5%General, administrative and other expenses as a % of Net sales 9.4% 10.2% 9.5% 9.3% 9.0% 8.9% 8.7%Incom tax rate 37.1% 62.7% 30.5% 30.5% 30.5% 30.5% 30.5%

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Tempur SealyBalance Sheet ($ in Millions)

Fiscal Yeat Ended Dec. 30 2014A 2015A 2016E 2017E 2018E 2019E 2020ECurrent Assets:

Cash and cash equivalents $63 $154 $65 $162 $33 $236 $191Accounts receivable, net 386 379 394 412 430 448 465Inventories 217 199 209 221 233 245 257Prepaid expenses and other current assets 57 77 81 85 90 95 100

Total Current Assets $722 $809 $749 $881 $784 $1,023 $1,013

Property, plant and equipment, net $356 $362 $355 $348 $340 $332 $323Goodwill 737 709 709 709 709 709 709Other intangible assets, net 727 695 695 695 695 695 695Deferred income taxes 11 12 12 12 12 12 12Other non-current assets 31 68 68 68 68 68 68

Total Assets $2,583 $2,656 $2,589 $2,713 $2,609 $2,840 $2,821

Current Liabilities:Accounts payable $226 $266 $280 $296 $312 $329 $346Accrued expenses and other current liabilities 233 254 $268 $282 $298 $314 $331Income taxes payable 12 11 $11 $11 $11 $11 $11Current portion of long-term debt 66 182 $182 $182 $182 $182 $182

Total Current Liabilities $538 $713 $740 $771 $803 $836 $870

Long-term debt, net $1,498 $1,273 $1,106 $1,050 $739 $735 $450Deferred income taxes 217 195 195 195 195 195 195Other non-current liabilities 114 171 171 171 171 171 171

Total Liabilities $2,367 $2,353 $2,213 $2,188 $1,908 $1,938 $1,687Redeemable non-controlling interest 13 12 12 12 12 12 12

Stockholders' EquityCommon stock, $0.01 par value, 300.0 shares authorized; 99.2 million shares issued as of December 31, 2015 and 2014$1 $1 $1 $1 $1 $1 $1Additional paid in capital 412 463 463 463 463 463 463Retained earnings 1,037 1,110 1,183 1,333 1,508 1,710 1,942Accumulated other comprehensive loss (56) (110) (110) (110) (110) (110) (110)Treasury stock at cost; 36.8 and 38.3 shares as of December 31, 2015 and 2014, respectively (1,191) (1,174) (1,174) (1,174) (1,174) (1,174) (1,174)

Total Stockholders’ Equity 203 290 363 513 688 890 1,122Total Liabilities, Redeemable Non-Controlling Interest and Stockholders’ Equity $2,583 $2,656 $2,589 $2,713 $2,609 $2,840 $2,821

Metrics & DriversNet Earnings $109 $74 $173 $199 $226 $251 $282Cash Ratio 0.12 0.22 0.09 0.21 0.04 0.28 0.22Return on Equity 53.7% 25.3% 47.6% 38.9% 32.8% 28.3% 25.1%

x Net Debt $1,436 $1,119 $1,041 $888 $707 $499 $260

20

Tempur SealyStatement of Cash Flows ($ in Millions)

2014 2015 2016 2017 2018 2019 2020

Net income before non-controlling interest 110 75 191 207 223 241 246

Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization 76 71 75 79 84 88 93Amortization of stock-based compensation 13 23 0 0 0 0 0Amortization of deferred financing costs 13 20 0 0 0 0 0Write-off of deferred financing costs 0 0 0 0 0 0 0Bad debt expense 5 7 0 0 0 0 0Deferred income taxes (27) (21) 0 0 0 0 0Dividends received from unconsolidated affiliates 2 9 0 0 0 0 0Equity income in earnings of unconsolidated affiliates (8) (12) 0 0 0 0 0Non-cash interest expense on 8.0% Sealy Notes 5 6 0 0 0 0 0Loss on sale of assets 4 2 0 0 0 0 0Loss on disposal of business 23 0 0 0 0 0 0Foreign currency transaction adjustments and other 2 6 0 0 0 0 0

Changes in operating assets and liabilities, net of effect of business acquisitions:Accounts receivable (59) (35) (15) (18) (18) (18) (16)Inventories (34) 11 (10) (12) (12) (12) (14)Prepaid expenses and other current assets (15) (59) (4) (4) (5) (5) (5)Accounts payable 48 46 14 16 16 17 16Accrued expenses and other 57 90 14 14 16 16 16Income taxes 11 (4) 0 0 0 0 0

Net cash provided by operating activities $225 $234 $265 $283 $304 $327 $337

Cash Flows From Investing Activities:Acquisition of businesses, net of cash acquired (9) 0 0 0 0 0 0Proceeds from disposition of business 44 7 0 0 0 0 0Purchases of property, plant and equipment (48) (66) (68) (72) (76) (80) (84)Other 2 (1) 0 0 0 0 0

Net cash used in investing activities ($10) ($60) ($68) ($72) ($76) ($80) ($84)

Cash Flows From Financing Activities:Proceeds from 2012 credit agreement 272 414 0 0 0 0 0Repayments of 2012 credit agreement (511) (988) (105) (71) (166) (200) (288)Proceeds from issuance of Senior Notes 0 450 0 0 0 0 0Proceeds from 2011 credit facility 0 0 0 0 0 0 0Repayments of 2011 credit facility 0 0 0 0 0 0 0Proceeds from exercise of stock options 4 20 0 0 0 0 0Excess tax benefit from stock based compensation 2 22 0 0 0 0 0Proceeds from issuance of treasury stock by CEO 0 5 0 0 0 0 0Treasury stock repurchased (2) (1) (100) (50) (50) (50) (50)Payments of deferred financing costs (3) (8) 0 0 0 0 0Other 1 (4) 0 0 0 0 0

Net cash (used in) provided by financing activities ($238) ($91) ($205) ($121) ($216) ($250) ($338)

Net Effect of Exchange Rate Changes on Cash and Cash Equivilents (5) (8) 0 0 0 0 0Increase (decrease) in cash and cash equivalents (19) 91 (9) 90 12 (3) (86)

Cash and Cash Equivilents (beginning of period) $81 $63 $154 $145 $235 $247 $244Cash and Cash Equivilents (end of period) $63 $154 $145 $235 $247 $244 $158

Metrics and DriversOperating Profit 276 309 386 408 432 457 465EBITDA $353 $381 $461 $487 $515 $545 $558

Tempur SealyStatement of Cash Flows ($ in Millions)

2014 2015 2016 2017 2018 2019 2020

Net income before non-controlling interest $110 $75 $173 $199 $226 $251 $282

Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization 76 71 $75 $79 $84 $88 $93Amortization of stock-based compensation 13 23 0 0 0 0 0Amortization of deferred financing costs 13 20 0 0 0 0 0Write-off of deferred financing costs 0 0 0 0 0 0 0Bad debt expense 5 7 0 0 0 0 0Deferred income taxes (27) (21) 0 0 0 0 0Dividends received from unconsolidated affiliates 2 9 0 0 0 0 0Equity income in earnings of unconsolidated affiliates (8) (12) 0 0 0 0 0Non-cash interest expense on 8.0% Sealy Notes 5 6 0 0 0 0 0Loss on sale of assets 4 2 0 0 0 0 0Loss on disposal of business 23 0 0 0 0 0 0Foreign currency transaction adjustments and other 2 6 0 0 0 0 0

Changes in operating assets and liabilities, net of effect of business acquisitions:Accounts receivable (59) (35) (15) (18) (17) (18) (18)Inventories (34) 11 (10) (12) (12) (12) (12)Prepaid expenses and other current assets (15) (59) (4) (4) (5) (5) (5)Accounts payable 48 46 14 16 16 17 17Accrued expenses and other 57 90 14 15 15 16 17Income taxes 11 (4) 0 0 0 0 0

Net cash provided by operating activities $225 $234 $247 $276 $307 $338 $374

Cash Flows From Investing Activities:Acquisition of businesses, net of cash acquired (9) 0 0 0 0 0 0Proceeds from disposition of business 44 7 0 0 0 0 0Purchases of property, plant and equipment (48) (66) (68) (72) (76) (80) (85)Other 2 (1) 0 0 0 0 0

Net cash used in investing activities ($10) ($60) ($68) ($72) ($76) ($80) ($85)

Cash Flows From Financing Activities:Proceeds from 2012 credit agreement $272 $414 - - - - - - - - - - Repayments of 2012 credit agreement (511) (988) (167) (56) (311) (4) (285)Proceeds from issuance of Senior Notes 0 450 0 0 0 0 0Proceeds from 2011 credit facility 0 0 0 0 0 0 0Repayments of 2011 credit facility 0 0 0 0 0 0 0Proceeds from exercise of stock options 4 20 0 0 0 0 0Excess tax benefit from stock based compensation 2 22 0 0 0 0 0Proceeds from issuance of treasury stock by CEO 0 5 0 0 0 0 0Treasury stock repurchased (2) (1) (100) (50) (50) (50) (50)Payments of deferred financing costs (3) (8) 0 0 0 0 0Other 1 (4) 0 0 0 0 0

Net cash (used in) provided by financing activities ($238) ($91) ($267) ($106) ($361) ($54) ($335)

Net Effect of Exchange Rate Changes on Cash and Cash Equivilents (5) (8) 0 0 0 0 0Increase (decrease) in cash and cash equivalents (19) 91 (89) 97 (130) 203 (45)

Cash and Cash Equivilents (beginning of period) $81 $63 $154 $65 $162 $33 $236Cash and Cash Equivilents (end of period) $63 $154 $65 $162 $33 $236 $191

21

Tempur SealyDiscounted Cash Flow Analysis ($ in Millions)

Fiscal Year Ended2014A 2015A 2016E 2017E 2018E 2019E 2020E

Discounted Cash Flow AnalysisYears 1.0 2.0 3.0 4.0 5.0

Revenue $3,322 $3,503 $3,694 $3,896 $4,110Less: Operating Expenses 2,962 3,105 3,258 3,424 3,594

Operating Profit $359 $398 $436 $473 $517Taxes @ 30.5% 110 121 133 144 158

Tax-Effected EBIT $250 $276 $303 $328 $359

Plus: Depreciation $75 $79 $84 $88 $93Change in Working Capital (2) (3) (2) (2) (1)Less: Capital Expenditures (68) (72) (76) (80) (85)

Unlevered Free Cash Flow $255 $280 $308 $334 $3679.9% 9.9% 8.5% 9.6%

Present Value @ a Discount Rate of: 8.3% $236 $239 $243 $243 $246Present Value of Projection Period 1,207

22

LTM 2014A 2015A LTM 2014A 2015A LTM 2014 2015A

Tempur Sealy TPX $3,584.2 $4,897.5 12.6x 13.4x 15.0x 1.8x 1.6x 1.8x 34.0x 23.0x 35.2xMattress Firm Holding CorpMFRM $1,551.9 $2,241.1 8.1x 12.8x 19.8x .8x 1.3x 1.5x 17.9x 25.3x 28.0xSelect Comfort Corp SCSS $907.7 $871.5 6.5x 8.4x 8.8x .8x 1.1x 1.1x 13.9x 19.7x 22.8xTuesday Morning Corp TUES $353.9 $318.6 11.4x 15.2x 15.0x .4x .6x .7x 61.4x 46.9x 46.9xArmstrong World IndustriesAWI $2,309.5 $3,067.7 9.5x 12.9x 10.8x 1.4x 1.6x 1.4x 29.3x 31.2x 31.2xLeggett & Platt Inc LEG $6,567.0 $7,274.7 10.3x 12.4x 12.4x 1.6x 1.4x 1.6x 20.5x 17.6x 17.6x

Implied Valuation3rd Quartile $73.53 $60.33 $62.76Implied Enterprise Value (Mean) $57.56 $50.71 $56.34Implied Enterprise Value (Median) $63.55 $47.05 $58.971st Quartile $47.68 $39.63 $45.80

3rd Quartile 10.3x 12.9x 15.0x 1.4x 1.4x 1.5x 29.3x 31.2x 31.2xMedian 9.5x 12.8x 12.4x .8x 1.3x 1.4x 20.5x 25.3x 28.0xMean 9.2x 12.4x 13.4x 1.0x 1.2x 1.3x 28.6x 28.1x 29.3x1st Quartile 8.1x 12.4x 10.8x .8x 1.1x 1.1x 17.9x 19.7x 22.8x

P/EName Ticker Market Cap EV

EV/EBITDA EV/Sales

Cleveland Research Company 2016 Stock Pitch Competition- Tempur Selay Finalist

Business

Transcript of Cleveland Research Company 2016 Stock Pitch Competition- Tempur Selay Finalist