As of June 2, 2025, Haverty Furniture Companies Inc's estimated intrinsic value ranges from $18.09 to $52.79 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $25.71 | +22.7% |
| Discounted Cash Flow (5Y) | $27.16 | +29.6% |
| Dividend Discount Model (Multi-Stage) | $19.51 | -6.9% |
| Dividend Discount Model (Stable) | $18.09 | -13.7% |
| Earnings Power Value | $52.79 | +151.9% |
Is Haverty Furniture Companies Inc (HVT) undervalued or overvalued?
With the current market price at $20.96, the stock appears to be significantly undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Haverty Furniture Companies Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.5 | 0.76 |
| Cost of equity | 6.2% | 9.1% |
| Cost of debt | 4.5% | 4.5% |
| Tax rate | 23.2% | 23.5% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 4.8% | 6.3% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $27 | $327M | 79.2% |
| 10-Year Growth | $26 | $303M | 61.6% |
| 5-Year EBITDA | $31 | $391M | 82.6% |
| 10-Year EBITDA | $31 | $386M | 69.9% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $40M |
| Discount Rate (WACC) | 6.3% - 4.8% |
| Enterprise Value | $641M - $840M |
| Net Debt | $(112)M |
| Equity Value | $753M - $952M |
| Outstanding Shares | 16M |
| Fair Value | $47 - $59 |
| Selected Fair Value | $52.79 |
| Metric | Value |
|---|---|
| Market Capitalization | $339M |
| Enterprise Value | $227M |
| Trailing P/E | 15.86 |
| Forward P/E | 16.07 |
| Trailing EV/EBITDA | 7.50 |
| Current Dividend Yield | 614.35% |
| Dividend Growth Rate (5Y) | -20.21% |
| Debt-to-Equity Ratio | 1.06 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $7.71 |
| Discounted Cash Flow (5Y) | 25% | $6.79 |
| Dividend Discount Model (Multi-Stage) | 20% | $3.90 |
| Dividend Discount Model (Stable) | 15% | $2.71 |
| Earnings Power Value | 10% | $5.28 |
| Weighted Average | 100% | $26.40 |
Based on our comprehensive valuation analysis, Haverty Furniture Companies Inc's weighted average intrinsic value is $26.40, which is approximately 25.9% above the current market price of $20.96.
Key investment considerations:
Given these factors, we believe Haverty Furniture Companies Inc is currently significantly undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.