Leggett & Platt, Incorporated

DB:LP1 Stock Report

Market Cap: €1.5b

Leggett & Platt Valuation

Is LP1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of LP1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LP1 (€11.3) is trading below our estimate of fair value (€18.34)

Significantly Below Fair Value: LP1 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for LP1?

Key metric: As LP1 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for LP1. This is calculated by dividing LP1's market cap by their current revenue.
What is LP1's PS Ratio?
PS Ratio0.4x
SalesUS$4.44b
Market CapUS$1.57b

Price to Sales Ratio vs Peers

How does LP1's PS Ratio compare to its peers?

The above table shows the PS ratio for LP1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.8x
SUR Surteco Group
0.3x4.4%€285.3m
ACWN A.S. Création Tapeten
0.2x2.8%€18.7m
EIN3 Einhell Germany
0.7x5.9%€725.8m
TNIE tonies
2x20.0%€784.4m
LP1 Leggett & Platt
0.4x0.9%€1.6b

Price-To-Sales vs Peers: LP1 is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (0.8x).


Price to Sales Ratio vs Industry

How does LP1's PS Ratio compare vs other companies in the European Consumer Durables Industry?

13 CompaniesPrice / SalesEstimated GrowthMarket Cap
LP1 0.4xIndustry Avg. 0.7xNo. of Companies22PS00.61.21.82.43+
13 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: LP1 is good value based on its Price-To-Sales Ratio (0.4x) compared to the European Consumer Durables industry average (0.7x).


Price to Sales Ratio vs Fair Ratio

What is LP1's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LP1 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ratio0.3x

Price-To-Sales vs Fair Ratio: LP1 is expensive based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (0.3x).


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 LP1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€11.30
€12.26
+8.5%
3.5%€12.87€11.95n/a3
Nov ’25€10.96
€12.33
+12.5%
3.5%€12.95€12.02n/a3
Oct ’25€12.21
€11.08
-9.2%
7.6%€11.68€9.88n/a3
Sep ’25€11.37
€11.30
-0.6%
7.6%€11.91€10.08n/a3
Aug ’25€12.11
€10.47
-13.6%
4.2%€11.08€10.16n/a3
Jul ’25€10.70
€11.21
+4.8%
11.8%€13.08€10.28n/a3
Jun ’25€10.08
€11.67
+15.8%
9.8%€12.90€10.13n/a3
May ’25€17.20
€15.67
-8.9%
22.1%€18.71€10.29n/a4
Apr ’25€17.65
€17.46
-1.1%
15.7%€21.41€14.90n/a4
Mar ’25€18.86
€18.25
-3.2%
12.0%€21.35€16.71n/a3
Feb ’25€21.47
€21.16
-1.5%
12.8%€23.92€17.48n/a3
Jan ’25€23.66
€20.62
-12.8%
15.0%€23.66€16.38n/a3
Dec ’24€21.16
€20.79
-1.8%
12.9%€22.68€17.01n/a3
Nov ’24€22.11
€20.79
-6.0%
12.9%€22.68€17.01€10.963
Oct ’24€23.88
€25.51
+6.8%
17.7%€29.16€19.13€12.213
Sep ’24€25.96
€25.51
-1.7%
17.7%€29.16€19.13€11.373
Aug ’24€25.72
€25.49
-0.9%
17.7%€29.14€19.12€12.113
Jul ’24€27.41
€27.26
-0.6%
21.3%€31.80€19.08€10.703
Jun ’24€28.46
€27.26
-4.2%
21.3%€31.80€19.08€10.083
May ’24€28.96
€27.49
-5.1%
21.3%€32.07€19.24€17.203
Apr ’24€28.37
€30.02
+5.8%
24.4%€36.97€19.91€17.653
Mar ’24€32.26
€30.02
-7.0%
24.4%€36.97€19.91€18.863
Feb ’24€33.52
€30.98
-7.6%
21.1%€38.11€22.31€21.473
Jan ’24€30.60
€31.64
+3.4%
21.1%€38.92€22.78€23.663
Dec ’23€34.23
€36.11
+5.5%
11.5%€41.51€31.38€21.163
Nov ’23€34.05
€36.11
+6.0%
11.5%€41.51€31.38€22.113

Analyst Forecast: Target price is less than 20% higher than the current share price.


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