LZB
La-Z-Boy Incorporated
$39.87
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 4.7% below fair value
You pay
$39.87
Bear
$36.60
Fair
$41.83
Bull
$47.06
Bear
$36.60
-8.2%
$2.61 × 14x P/E
Fair
$41.83
+4.9%
$2.61 × 16x P/E
Bull
$47.06
+18.0%
$2.61 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
15.3x
Summary
Applying a 16x P/E to adjusted EPS of $2.61, the base-case value is $41.83 per share. DDM cross-check: $2608.53.
Warnings
Dividend-based valuation: $2608.53 (above our primary estimate by 6137%). Large gaps may signal the dividend doesn't reflect full earning power.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples