Is Leggett & Platt, Inc. overvalued or undervalued?

As of 8 February 2024, Leggett & Platt, Inc. has moved from a very attractive to a risky valuation grade. The company is currently considered overvalued based on its financial metrics. The P/E ratio stands at 9, significantly lower than peers such as HNI Corp. with a P/E of 14.68 and MasterBrand, Inc. at 10.36, indicating that Leggett & Platt is trading at a discount relative to its competitors. Additionally, the EV to EBITDA ratio is 8.82, while HNI Corp. shows a more favorable ratio of 7.97, further supporting the overvaluation stance.
The company's Price to Book Value is 2.45, and it boasts a high dividend yield of 145.39%, which may attract income-focused investors despite the overall risk. However, with a return of -23.18% over the past year compared to a 10.26% gain in the S&P 500, the stock's performance has been disappointing. Overall, Leggett & Platt, Inc. appears to be overvalued in the current market environment.