A Look At Leggett & Platt (LEG) Valuation After 2025 Results And 2026 Guidance Update

Why the latest earnings and guidance update matters for Leggett & Platt (LEG)

Leggett & Platt (LEG) just released its fourth quarter and full year 2025 results alongside 2026 guidance, combining improved profitability with softer sales and an outlook that reflects ongoing pressure on volumes and earnings.

See our latest analysis for Leggett & Platt.

Against this backdrop, Leggett & Platt’s recent earnings and 2026 guidance have come after a mixed stretch for investors, with a 13.9% 90 day share price return and a 22.5% 1 year total shareholder return contrasting with a 68.4% 5 year total shareholder loss.

If this update has you reassessing where you want exposure, it could be a useful moment to look at 22 top founder-led companies as potential long term compounders beyond the usual names.

With Leggett & Platt trading at $11.55, sitting below both its analyst price target of $12.50 and an internal value estimate that implies an 18.3% discount, you have to ask yourself: is this a mispriced turnaround story, or is the market already bracing for weaker 2026 earnings?

Most Popular Narrative: 7.6% Undervalued

With Leggett & Platt last closing at $11.55 against a widely followed fair value of $12.50, the main narrative presents a modest undervaluation that hinges on both industry protection and internal restructuring.

Recent and proposed enforcement of tariffs on imported mattresses and components, combined with aggressive targeting of transshipment and non-compliant imports, is expected to create a more level playing field for domestic producers. This should drive higher demand for Leggett & Platt's U.S.-made bedding components and steel rod/wire, contributing to stronger revenue and gross margin expansion as price pressures from foreign dumping recede.

Read the complete narrative.

Curious what earnings, margins, and valuation multiple this story is built on? The fair value rests on a specific revenue path and profit mix that might surprise you.

The most followed narrative applies an 11.13% discount rate to Leggett & Platt's future cash flows and earnings, and assumes revenue pressure but gradually improving profitability as cost savings and tariff support feed through. It also incorporates expectations that earnings will rise from current levels over the next few years, with a future P/E below the wider US Consumer Durables industry. Together, these inputs frame the $12.50 fair value as a middle ground between near term headwinds and a more efficient, leaner business model.

Result: Fair Value of $12.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, you still need to weigh ongoing softness in bedding demand and competitive discounting in flooring and textiles, as these factors could pressure both revenue and margins.

Find out about the key risks to this Leggett & Platt narrative.

Next Steps

If this mix of pressure and potential leaves you on the fence, take a closer look at the data now and weigh the company’s trade offs for yourself, including 3 key rewards and 2 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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