• Ever wondered if La-Z-Boy is actually a hidden bargain, or if it is rightly priced for its well-known recliners? Let’s dive into the numbers and see where the real value might lie.

  • The stock has faced a tough stretch lately, dropping 8.9% in the past month and down 32.1% year-to-date. However, looking at a longer period shows a 22.3% gain over the last three years.

  • La-Z-Boy has been in the news for its strategic push to expand its retail footprint and reshape its supply chain. Both moves are aimed at adapting to shifts in consumer demand. Investors have been weighing these ambitions against broader challenges facing the home furnishings sector.

  • According to our valuation checks, La-Z-Boy currently earns a 3 out of 6 on the value score, which means it ticks half the boxes for being undervalued. We will break down what drives this score using classic valuation methods and hint at an even smarter way to spot value at the end of this article.

Find out why La-Z-Boy’s -29.9% return over the last year is lagging behind its peers.

The Discounted Cash Flow (DCF) model estimates a company’s intrinsic value by projecting its future cash flows and discounting them back to today’s dollars. This helps investors gauge what the business may truly be worth, beyond current market sentiment.

For La-Z-Boy, the current Free Cash Flow stands at $107.3 million. Analyst forecasts suggest that annual free cash flow is expected to grow steadily, reaching $126 million by 2029. Beyond this period, Simply Wall St extrapolates additional growth, gradually topping $188.3 million in 2035 using historical trends and industry estimates.

According to the DCF analysis using the 2 Stage Free Cash Flow to Equity method, the calculated fair value per share is $50.15. This model’s intrinsic discount indicates La-Z-Boy is currently trading about 41.5% below its estimated worth, implying the shares are strongly undervalued relative to their discounted future cash flows.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests La-Z-Boy is undervalued by 41.5%. Track this in your watchlist or portfolio, or discover 899 more undervalued stocks based on cash flows.

LZB Discounted Cash Flow as at Nov 2025 LZB Discounted Cash Flow as at Nov 2025

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for La-Z-Boy.

The Price-to-Earnings (PE) ratio is a widely used valuation tool for profitable companies like La-Z-Boy because it ties a company’s market price directly to its actual earnings performance. For established businesses, the PE ratio helps investors quickly see how much they are paying for each dollar of profit.

What constitutes a “normal” or “fair” PE ratio usually depends on a company’s expected growth rate and risk profile. Companies with higher growth prospects or a stable risk outlook tend to command higher multiples, while slower-growing or riskier firms generally see lower ratios.

Currently, La-Z-Boy trades at a PE ratio of 13.2x, which sits above both the Consumer Durables industry average of 11.0x and the direct peer group’s average of 10.1x. However, Simply Wall St’s proprietary “Fair Ratio” suggests that, accounting for La-Z-Boy’s specific earnings growth, margins, risk factors, and its standing in the industry, a PE of 13.5x would be justified.

The Fair Ratio is particularly useful compared to traditional benchmarks because it adjusts for the nuances of La-Z-Boy’s financial health, growth outlook, profit margins, and market cap, rather than relying solely on broad industry or peer averages. This means investors get a more tailored view of whether the stock’s current valuation makes sense.

Since La-Z-Boy’s actual PE ratio is just shy of its Fair Ratio, the stock appears to be valued about right based on current earnings and growth prospects.

Result: ABOUT RIGHT

NYSE:LZB PE Ratio as at Nov 2025 NYSE:LZB PE Ratio as at Nov 2025

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1418 companies where insiders are betting big on explosive growth.

Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is a simple, dynamic story you build around a company, connecting what you believe about its future to numbers like fair value, revenue growth, profit margins, and risk factors.

Instead of looking only at ratios and forecasts, Narratives let you explain why you think La-Z-Boy might succeed or struggle, giving context to your assumptions by linking its business story directly to your own fair value estimate. This approach transforms raw data into a living story, helping you and millions of other users on Simply Wall St’s Community page compare perspectives and refine your investment decision.

With Narratives, you can easily see if La-Z-Boy’s current price suggests a bargain or an overvalued risk, since your fair value (the result of your Narrative) is always compared to up-to-the-minute market prices. Plus, these Narratives update as soon as fresh info arrives, such as new earnings or breaking news, so your conclusions stay relevant and responsive.

For example, some investors believe La-Z-Boy’s aggressive retail expansion and better margins could justify a fair value as high as $46 per share, while others, worried about margin pressures and cash flow risks, peg fair value as low as $36. Either way, Narratives let you explain your reasoning and see how your outlook stacks up against others before you make any move.

Do you think there’s more to the story for La-Z-Boy? Head over to our Community to see what others are saying!

NYSE:LZB Community Fair Values as at Nov 2025 NYSE:LZB Community Fair Values as at Nov 2025

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include LZB.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com