Furniture & home furnishings profit margins and multiples

27 U.S. public companies · NYU Stern “Furn/Home Furnishings” · January 2026

Gross margin30.3%#64 of 94 · typical 36.9%
EBITDA margin9.8%#75 of 94 · typical 15.7%
Operating margin6.6%#72 of 94 · typical 12.1%
Net margin1.1%#81 of 94 · typical 7.3%
EV/EBITDA11.3×#58 of 91 · typical 13.2×
EV/Sales1.3×#78 of 94 · typical 2.6×
Cost of capital6.53%#61 of 94 · typical 7.08%

Value a business in the furniture & home furnishings industry

Buyer, discount, growth and tax
Pick the industry, then enter revenue and EBITDA.

Industry data: Damodaran, NYU Stern, January 2026 · sale multiple: BizBuySell, Q2 2026. An estimate, not an appraisal.

The numbers

MeasureFurniture & Home FurnishingsTypical industryWhat it means
Gross margin30.3%36.9%Revenue left after the direct cost of what is sold
EBITDA margin9.8%15.7%Profit before interest, tax, depreciation and amortization
Operating margin6.6%12.1%Profit from operations, before interest and tax
Net margin1.1%7.3%Profit after every cost and tax
EV/EBITDA11.3×13.2×Enterprise value ÷ EBITDA, profitable companies
EV/Sales1.3×2.6×Enterprise value ÷ revenue
Cost of capital6.53%7.08%Return investors require, debt and equity blended
SG&A ÷ revenue22.4%—Selling, general and administrative costs
Debt ÷ capital29.7%—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%.