Leon's Furniture Limited

TSX:LNF Stock Report

Market Cap: CA$1.8b

Leon's Furniture Valuation

Is LNF undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LNF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LNF (CA$27.04) is trading below our estimate of fair value (CA$56.83)

Significantly Below Fair Value: LNF is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LNF?

Key metric: As LNF is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for LNF. This is calculated by dividing LNF's market cap by their current earnings.
What is LNF's PE Ratio?
PE Ratio14x
EarningsCA$132.09m
Market CapCA$1.84b

Price to Earnings Ratio vs Peers

How does LNF's PE Ratio compare to its peers?

The above table shows the PE ratio for LNF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26x
GBT BMTC Group
16.4xn/aCA$442.5m
PET Pet Valu Holdings
21.4x18.1%CA$1.9b
ATZ Aritzia
50.5x59.7%CA$5.1b
DIV Diversified Royalty
15.6x3.6%CA$494.5m
LNF Leon's Furniture
14x5.9%CA$1.8b

Price-To-Earnings vs Peers: LNF is good value based on its Price-To-Earnings Ratio (14x) compared to the peer average (26x).

Price to Earnings Ratio vs Industry

How does LNF's PE Ratio compare vs other companies in the North American Specialty Retail Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
LNF 14.0xIndustry Avg. 16.4xNo. of Companies11PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: LNF is good value based on its Price-To-Earnings Ratio (14x) compared to the North American Specialty Retail industry average (16.6x).

Price to Earnings Ratio vs Fair Ratio

What is LNF's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LNF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14x
Fair PE Ratio18x

Price-To-Earnings vs Fair Ratio: LNF is good value based on its Price-To-Earnings Ratio (14x) compared to the estimated Fair Price-To-Earnings Ratio (18x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst LNF forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$27.04
CA$36.00
+33.1%
22.9%CA$50.00CA$30.00n/a4
Nov ’25CA$27.00
CA$35.63
+31.9%
24.0%CA$50.00CA$28.50n/a4
Oct ’25CA$29.57
CA$37.50
+26.8%
24.3%CA$50.00CA$28.50n/a3
Sep ’25CA$29.54
CA$37.50
+26.9%
24.3%CA$50.00CA$28.50n/a3
Aug ’25CA$26.83
CA$37.00
+37.9%
35.1%CA$50.00CA$24.00n/a2
Jul ’25CA$22.89
CA$37.00
+61.6%
35.1%CA$50.00CA$24.00n/a2

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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