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Ethan Allen Interiors Inc. (ETD)

Company Dividend Discount ModelIndustry: Furnishings, Fixtures & AppliancesSector: Consumer Cyclical

Valuation Snapshot

Stable Growth$43.31 - $114.89$66.22
Multi-Stage$32.18 - $35.02$33.58
Blended Fair Value$49.90
Current Price$29.46
Upside69.38%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS18.46%14.14%1.951.961.811.881.690.841.831.150.780.65
YoY Growth---0.37%8.44%-3.94%11.47%101.64%-54.31%59.24%47.32%20.34%24.71%
Dividend Yield--6.63%6.15%6.05%8.90%7.13%6.19%9.60%5.56%2.41%2.08%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)47.33
(-) Cash Dividends Paid (M)46.26
(=) Cash Retained (M)1.07
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)9.475.923.55
Cash Retained (M)1.071.071.07
(-) Cash Required (M)-9.47-5.92-3.55
(=) Excess Retained (M)-8.40-4.85-2.48
(/) Shares Outstanding (M)25.6325.6325.63
(=) Excess Retained per Share-0.33-0.19-0.10
LTM Dividend per Share1.801.801.80
(+) Excess Retained per Share-0.33-0.19-0.10
(=) Adjusted Dividend1.481.621.71
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Fair Value$43.31$66.22$114.89
Upside / Downside47.01%124.79%289.97%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)47.3350.4053.6857.1760.8964.8466.79
Payout Ratio97.75%96.20%94.65%93.10%91.55%90.00%92.50%
Projected Dividends (M)46.2648.4950.8153.2355.7458.3661.78

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.10%9.10%9.10%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)44.0344.4544.86
Year 2 PV (M)41.8942.6943.49
Year 3 PV (M)39.8540.9942.15
Year 4 PV (M)37.8939.3540.85
Year 5 PV (M)36.0237.7639.57
PV of Terminal Value (M)625.30655.50686.86
Equity Value (M)824.97860.73897.78
Shares Outstanding (M)25.6325.6325.63
Fair Value$32.18$33.58$35.02
Upside / Downside9.24%13.97%18.88%

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