Is Leggett & Platt, Inc. overvalued or undervalued?

As of 31 July 2025, the valuation grade for Leggett & Platt, Inc. has moved from risky to attractive, indicating a positive shift in its investment appeal. The company appears undervalued, supported by a P/E ratio of 9, which is significantly lower than the peer average of 12.32 for similar companies like HNI Corp. and La-Z-Boy, Inc. Additionally, Leggett & Platt boasts a robust dividend yield of 145.39% and a favorable EV to EBITDA ratio of 8.82 compared to HNI Corp.'s 7.68, suggesting strong earnings potential relative to its enterprise value.
Despite the attractive valuation metrics, Leggett & Platt has underperformed against the S&P 500, with a 1-year return of -26.75% compared to the index's 17.14%. This stark contrast in performance highlights the potential for recovery as the market recognizes the company's undervaluation. Overall, the combination of low valuation ratios and a favorable grade change positions Leggett & Platt as an appealing investment opportunity.