MeritValue

ETHAN ALLEN INTERIORS INC

ETDdata completeness 88%18 fiscal years on file
The thesis, from the filings

ETHAN ALLEN INTERIORS INC earns about 23% 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 $25.8 and $42.32 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 2021FY 2022FY 2023FY 2024FY 2025
Revenue$685.2M1$817.8M2$791.4M3$646.2M3$614.6M3
Net income—$103.3M4$105.8M4$63.8M4$51.6M5
Operating cash flow—$69.4M6$100.7M7$80.2M7$61.7M7
Capital expenditure—$13.4M8$13.9M9$9.61M9$11.3M9
Free cash flow (derived)—$56M6$86.8M7$70.6M7$50.4M7
Total debt—————
Cash & equivalents—$109.9M10$62.1M11$69.7M12$76.2M12
Diluted shares—25.5M25.6M25.6M25.6M

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
$188.17
your share of equity
Profit it earned you last year
$20.13
Free cash flow it threw off
$19.67
Debt you’d be carrying
—

10 shares is a claim on $188.17 of net worth that earned you $20.13 and generated $19.67 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
23% avg · 5y
FY21 —FY22 35%FY23 27%FY24 17%FY25 13%

It earned about 23% 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 v0.1.0

The 3 estimate methods that apply put fair value between $25.8 and $42.32 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
$39.35
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$70.6M
DCF · Growth Exit 5Y
$42.32
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$70.6M
Earnings Power Value
$25.8
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$63.8M
  • growthAssumed0.0%
Graham Number
$29.17
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)8.93%
Terminal growth2.5%
At your growth, a share is worth $42.32
The three cases
Bear0.0%$42.32
Base0.0%$42.32
Bull5.0%$51.84

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 2021-12-31 · accession 0001437749-22-021450 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-06-30 · accession 0001437749-24-027664 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-06-30 · accession 0001437749-25-027594 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2022-06-30 · accession 0001437749-24-027664 (NetIncomeLoss)
  5. 10-K · period ending 2025-06-30 · accession 0001437749-25-027594 (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 2022-06-30 · accession 0001437749-24-027664 (PaymentsToAcquirePropertyPlantAndEquipment)
  9. 10-K · period ending 2023-06-30 · accession 0001437749-25-027594 (PaymentsToAcquirePropertyPlantAndEquipment)
  10. 10-K · period ending 2022-06-30 · accession 0001437749-23-024609 (CashAndCashEquivalentsAtCarryingValue)
  11. 10-K · period ending 2023-06-30 · accession 0001437749-24-027664 (CashAndCashEquivalentsAtCarryingValue)
  12. 10-K · period ending 2024-06-30 · accession 0001437749-25-027594 (CashAndCashEquivalentsAtCarryingValue)