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ETD: Completed Buybacks And New Design Center Will Support Returns

Update shared on 11 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
-16.1%
7D
5.1%

Analysts have modestly raised their price target on Ethan Allen Interiors to approximately $28.00, reflecting incremental confidence in the companys stable revenue growth outlook, resilient profit margins, and a slightly lower perceived risk profile embedded in the updated discount rate and future price to earnings assumptions.

What's in the News

  • Completion of long running share repurchase program, with 15,160,095 shares bought back in total, representing 44.78% of shares outstanding for $450.43 million under the authorization announced in November 2002 (Key Developments)
  • No additional share repurchases recorded from July 1, 2025 to September 30, 2025, leaving the most recent quarter with zero buyback activity despite the completed program scope (Key Developments)
  • Opening of a new Ethan Allen Design Center in Colorado Springs, Colorado, featuring a gallery showroom and dedicated designer workspaces, expanding the company’s retail footprint in the state to four locations (Key Developments)
  • Enhanced customer service offerings at the new Colorado Springs Design Center, including complimentary full service interior design, 3D room previews, and both at home and virtual appointments to support customized projects (Key Developments)

Valuation Changes

  • Fair Value: Maintained at approximately $28.00 per share, indicating no material change in the intrinsic value estimate.
  • Discount Rate: Fallen slightly from about 8.99% to roughly 8.94%, reflecting a modestly lower perceived risk profile.
  • Revenue Growth: Essentially unchanged at around 1.61% annually, supporting a stable long term growth outlook.
  • Net Profit Margin: Stable at approximately 6.22%, indicating no meaningful revision to long run profitability assumptions.
  • Future P/E: Edged down marginally from about 22.88x to roughly 22.84x, suggesting a slightly more conservative valuation multiple.

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