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Select Comfort has the Highest EV/EBITDA Ratio in the Homefurnishing Retail Industry (SCSS, AAN, PIR, WSM, HVT)

By Shiri Gupta

Below are the three companies in the Homefurnishing Retail industry with the highest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Select Comfort ranks highest with a an EV/EBITDA ratio of 7.77. Following is Aaron's with a an EV/EBITDA ratio of 7.13. Pier 1 Imports ranks third highest with a an EV/EBITDA ratio of 6.50.

Williams-Sonoma follows with a an EV/EBITDA ratio of 6.41, and Haverty Furniture rounds out the top five with a an EV/EBITDA ratio of 6.33.

SmarTrend recommended that subscribers consider buying shares of Select Comfort on February 16th, 2017 as our technology indicated a new Uptrend was in progress when shares hit $22.51. Since that recommendation, shares of Select Comfort have risen 8.7%. We continue to monitor Select Comfort for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest ev/ebitda ratio select comfort aaron's Pier 1 Imports Williams-Sonoma haverty furniture