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Tempur-Pedic International is Among the Companies in the Home Furnishings Industry With the Highest P/E Ratio (TPX, LEG, ETH, MHK, LZB)

By Amy Schwartz

Below are the three companies in the Home Furnishings industry with the highest price to earnings (P/E) ratios. P/E is an important valuation tool when comparing companies in the same industry. A higher P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio.

Tempur-Pedic International ranks highest with a a P/E ratio of 24.30. Following is Leggett & Platt with a a P/E ratio of 23.67. Ethan Allen Interiors ranks third highest with a a P/E ratio of 22.25.

Mohawk Industries follows with a a P/E ratio of 20.96, and La-Z-Boy rounds out the top five with a a P/E ratio of 18.86.

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 16.1%. We continue to monitor La-Z-Boy for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest p/e ratio tempur-pedic international leggett & platt ethan allen interiors mohawk industries la-z-boy