LZB
La-Z-Boy Incorporated
$36.65
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 5.9% below fair value
You pay
$36.65
Bear
$34.09
Fair
$38.96
Bull
$43.83
Bear
$34.09
-7.0%
$2.44 × 14x P/E
Fair
$38.96
+6.3%
$2.44 × 16x P/E
Bull
$43.83
+19.6%
$2.44 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
15.1x
Summary
Applying a 16x P/E to adjusted EPS of $2.44, the base-case value is $38.96 per share. DDM cross-check: $2608.53.
Warnings
Dividend-based valuation: $2608.53 (above our primary estimate by 6595%). 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