LZB
La-Z-Boy Incorporated
$29.94
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 24.2% below fair value
You pay
$29.94
Bear
$34.58
Fair
$39.52
Bull
$44.46
Bear
$34.58
+15.5%
$2.47 × 14x P/E
Fair
$39.52
+32.0%
$2.47 × 16x P/E
Bull
$44.46
+48.5%
$2.47 × 18x P/E
Adjust Assumptions
16.0x
2.47$
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
12.1x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (10 analysts)
$40.00
Divergence from AlphaVal
1%
Summary
Applying a 16x P/E to adjusted EPS of $2.47, the base-case value is $39.52 per share. DDM cross-check: $2669.19.
Warnings
Dividend-based valuation: $2669.19 (above our primary estimate by 6654%). 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