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Shares of Dixie Rank the Highest in Terms of EV/EBITDA Ratio in the Home Furnishings Industry (DXYN, MHK, LEG, TPX, ETH)

By James Quinn

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.

Dixie ranks highest with a an EV/EBITDA ratio of 17.31. Following is Mohawk Industries with a an EV/EBITDA ratio of 15.34. Leggett & Platt ranks third highest with a an EV/EBITDA ratio of 14.37.

Tempur-Pedic International follows with a an EV/EBITDA ratio of 13.76, and Ethan Allen Interiors rounds out the top five with a an EV/EBITDA ratio of 11.79.

SmarTrend recommended that subscribers consider buying shares of Leggett & Platt on February 2nd, 2016 as our technology indicated a new Uptrend was in progress when shares hit $41.38. Since that recommendation, shares of Leggett & Platt have risen 28.5%. We continue to monitor Leggett & Platt for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest ev/ebitda ratio dixie mohawk industries leggett & platt tempur-pedic international ethan allen interiors