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Highest EV/EBITDA Ratio in the Home Furnishings Industry Detected in Shares of Tempur Sealy Int (TPX, LEG, MHK, HOFT, ETH)

By Shiri Gupta

Below are the three companies in the Home Furnishings 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.

Tempur Sealy Int ranks highest with a an EV/EBITDA ratio of 12.19. Leggett & Platt is next with a an EV/EBITDA ratio of 10.58. Mohawk Inds ranks third highest with a an EV/EBITDA ratio of 10.22.

Hooker Furniture follows with a an EV/EBITDA ratio of 9.25, and Ethan Allen rounds out the top five with a an EV/EBITDA ratio of 8.64.

SmarTrend recommended that its subscribers protect gains by selling shares of Ethan Allen on January 10th, 2018 by issuing a Downtrend alert when the shares were trading at $27.33. Since that call, shares of Ethan Allen have fallen 11.1%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: highest ev/ebitda ratio tempur sealy int leggett & platt mohawk inds hooker furniture ethan allen