MeritValue

ETHAN ALLEN INTERIORS INC

ETDdata completeness 88%19 fiscal years on file

Data notes: no data for concept 'investmentsAtFairValue'; no data for concept 'netInvestmentIncome'

The thesis, from the filings

ETHAN ALLEN INTERIORS INC earns about 20% on invested capital, far above its ~9% cost of capital, with a roughly flat share count — a real edge showing up in the numbers. The estimate methods put fair value between $25.07 and $29.84 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$817.8M1$791.4M2$646.2M3$614.6M3$579.5M3
Net income$103.3M4$105.8M4$63.8M4$51.6M5$39.9M5
Operating cash flow$69.4M6$100.7M7$80.2M8$61.7M8$52.5M8
Capital expenditure$13.4M9$13.9M10$9.61M11$11.3M11$11M11
Free cash flow (derived)$56M6$86.8M7$70.6M8$50.4M8$41.4M8
Total debt—————
Cash & equivalents$109.9M12$62.1M13$69.7M14$76.2M15$73.6M15
Diluted shares25.5M25.6M25.6M25.6M25.6M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$184.31
your share of equity
Profit it earned you last year
$15.59
Free cash flow it threw off
$16.2
Debt you’d be carrying
—

10 shares is a claim on $184.31 of net worth that earned you $15.59 and generated $16.2 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
20% avg · 5y
FY22 35%FY23 27%FY24 17%FY25 13%FY26 10%

It earned about 20% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
+0% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.5.0

The 3 estimate methods that apply put fair value between $25.07 and $29.84 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$27.85
assumptions (10)
  • riskFreeRate5.0%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$50.4M
DCF · Growth Exit 5Y
$29.84
assumptions (10)
  • riskFreeRate5.0%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$50.4M
Earnings Power Value
$25.07
assumptions (8)
  • riskFreeRate5.0%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$63.8M
  • growthAssumed0.0%
Graham Number
$25.43
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)9.22%
Terminal growth2.5%
At your growth, a share is worth $29.84
The three cases
Bear0.0%$29.84
Base0.0%$29.84
Bull5.0%$36.33

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2022-06-30 · accession 0001437749-24-027664 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-06-30 · accession 0001437749-25-027594 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2024-06-30 · accession 0001437749-26-029578 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-06-30 · accession 0001437749-24-027664 (NetIncomeLoss)
  5. 10-K · period ending 2025-06-30 · accession 0001437749-26-029578 (ProfitLoss)
  6. 10-K · period ending 2022-06-30 · accession 0001437749-24-027664 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2023-06-30 · accession 0001437749-25-027594 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2024-06-30 · accession 0001437749-26-029578 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2022-06-30 · accession 0001437749-24-027664 (PaymentsToAcquirePropertyPlantAndEquipment)
  10. 10-K · period ending 2023-06-30 · accession 0001437749-25-027594 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2024-06-30 · accession 0001437749-26-029578 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2022-06-30 · accession 0001437749-23-024609 (CashAndCashEquivalentsAtCarryingValue)
  13. 10-K · period ending 2023-06-30 · accession 0001437749-24-027664 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2024-06-30 · accession 0001437749-25-027594 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2025-06-30 · accession 0001437749-26-029578 (CashAndCashEquivalentsAtCarryingValue)