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Tempur-Pedic International has the Highest P/E Ratio in the Home Furnishings Industry (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 23.87. Following is Leggett & Platt with a a P/E ratio of 23.15. Ethan Allen Interiors ranks third highest with a a P/E ratio of 22.43.

Mohawk Industries follows with a a P/E ratio of 21.08, and La-Z-Boy rounds out the top five with a a P/E ratio of 18.87.

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 12.8%. 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