La-Z-Boy Valuation

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

LZB ($43.69) is trading below our estimate of [[fair value]] ($67.15)

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

Valuation Score

3/6

Valuation Score 3/6

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 LZB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LZB ($43.69) is trading below our estimate of fair value ($67.15)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for LZB. This is calculated by dividing LZB's market cap by their current earnings.
What is LZB's PE Ratio?
PE Ratio	14.6x
Earnings	US$124.14m
Market Cap	US$1.81b

LZB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1x
Enterprise Value/EBITDA	9.8x
PEG Ratio	2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LZB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	26.8x
ETD Ethan Allen Interiors	12x	-0.5%	US$761.1m
MHK Mohawk Industries	15.5x	19.0%	US$8.8b
LOVE Lovesac	55.2x	27.9%	US$540.0m
TPX Tempur Sealy International	24.4x	12.8%	US$9.5b
LZB La-Z-Boy	14.6x	7.3%	US$1.8b

Price-To-Earnings vs Peers: LZB is good value based on its Price-To-Earnings Ratio (14.6x) compared to the peer average (26.8x).

Price to Earnings Ratio vs Industry

How does LZB's PE Ratio compare vs other companies in the US Consumer Durables Industry?

0 Companies	Price / Earnings	Estimated Growth	Market Cap

No more companies available in this PE range

0 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: LZB is expensive based on its Price-To-Earnings Ratio (14.6x) compared to the US Consumer Durables industry average (11.4x).

Price to Earnings Ratio vs Fair Ratio

What is LZB'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.

LZB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14.6x
Fair PE Ratio	13.6x

Price-To-Earnings vs Fair Ratio: LZB is expensive based on its Price-To-Earnings Ratio (14.6x) compared to the estimated Fair Price-To-Earnings Ratio (13.6x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.