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Relatively Low EV/EBITDA Ratio Detected in Shares of Flexsteel Industries in the Home Furnishings Industry (FLXS, BSET, HOFT, LZB, ETH)

By Shiri Gupta

Below are the three companies in the Home Furnishings industry with the lowest 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.

Flexsteel Industries ranks lowest with a an EV/EBITDA ratio of 7.48. Bassett Furniture Industries is next with a an EV/EBITDA ratio of 7.59. Hooker Furniture ranks third lowest with a an EV/EBITDA ratio of 7.97.

La-Z-Boy follows with a an EV/EBITDA ratio of 10.31, and Ethan Allen Interiors rounds out the bottom five with a an EV/EBITDA ratio of 11.20.

SmarTrend recommended that subscribers consider buying shares of La-Z-Boy on February 18th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $23.36. Since that recommendation, shares of La-Z-Boy have risen 21.9%. We continue to monitor La-Z-Boy for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: lowest ev/ebitda ratio flexsteel industries bassett furniture industries hooker furniture la-z-boy ethan allen interiors