Revenue left after the direct cost of what is sold
EBITDA margin
9.8%
15.7%
Profit before interest, tax, depreciation and amortization
Operating margin
6.6%
12.1%
Profit from operations, before interest and tax
Net margin
1.1%
7.3%
Profit after every cost and tax
EV/EBITDA
11.3×
13.2×
Enterprise value ÷ EBITDA, profitable companies
EV/Sales
1.3×
2.6×
Enterprise value ÷ revenue
Cost of capital
6.53%
7.08%
Return investors require, debt and equity blended
SG&A ÷ revenue
22.4%
—
Selling, general and administrative costs
Debt ÷ capital
29.7%
—
Share of funding from debt, at market values
Beta (levered / total unlevered)
0.82 / 2.74
—
Market risk / all the risk an undiversified owner carries
Source: Aswath Damodaran, NYU Stern, January 2026. Aggregates: total profit ÷ total revenue across the group, so large companies weigh more.
Frequently asked questions
What is the average profit margin in the furniture & home furnishings industry?
Across 27 U.S. public companies in the furniture & home furnishings industry, net profit is 1.1% of revenue, operating profit 6.6% and gross profit 30.3% (January 2026 data from NYU Stern). That gross margin ranks 64 of 94 industries.
What is a good EBITDA margin in the furniture & home furnishings industry?
The industry average is 9.8%, against 15.7% for the typical industry. A business above 9.8% keeps more of each sale than the listed companies in its field.
What multiple do businesses in the furniture & home furnishings industry sell for?
Listed companies in the furniture & home furnishings industry trade at 11.3× EBITDA and 1.3× revenue. Small private businesses sell for far less: U.S. small businesses averaged 2.7× seller’s discretionary earnings in Q2 2026 (BizBuySell).
What discount rate should I use for a business in the furniture & home furnishings industry?
A diversified investor would want about 6.5% on the whole business (the industry cost of capital). An owner with most of their wealth in it carries more risk: 3.95% + total beta 2.74 × 4.46% = 16.2%.