3 Undervalued Household Durables Stocks for Monday, April 27

By Rosalio Madrigal
April 27, 2026
Diamond graphic indicating best value stocks in their industry
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Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Household Durables industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Household Durables Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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3 Undervalued Household Durables Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Household Durables industry for Monday, April 27, 2026. Let’s take a closer look at their individual scores to see how they measure up against each other and the Household Durables industry median.

Company Ticker Price/Sales Price/Earnings EV/EBITDA Shareholder Yield Price/Book Value Price/Free Cash Flow Value Grade
Dream Finders Homes, Inc. DFH 0.33 7.1 11.4 0.9% 0.99 na A
Ethan Allen Interiors Inc. ETD 0.96 13.0 12.5 8.0% 1.19 149.5 B
Toll Brothers, Inc. TOL 1.28 10.5 8.0 5.8% 1.65 10.6 A

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Dream Finders Homes, Inc.’s Value Grade

Value Grade:

Metric Score DFH Industry Median
Price/Sales 13 0.33 0.65
Price/Earnings 7 7.1 13.0
EV/EBITDA 43 11.4 11.1
Shareholder Yield 37 0.9% 1.9%
Price/Book Value 23 0.99 1.16
Price/Free Cash Flow na na 15.8

Dream Finders Homes, Inc., through its subsidiary, Dream Finders Homes LLC, engages in the homebuilding business in the United States. It operates through four segments: Southeast, Mid-Atlantic, Midwest, and Financial Services. The company designs, builds, constructs, and sells single-family homes, such as entry-level, first and second time move-up, and active adult and custom homes. It markets its homes under various brands, including Dream Finders Homes, DF Luxury, Reverie Active Adult Lifestyle by Dream Finders Homes, Craft Homes and Coventry Homes. The company also provides insurance agency services, including closing, escrow, and title insurance, as well as mortgage banking solutions. It sells its homes through its sales representatives and independent real estate brokers. The company was founded in 2008 and is headquartered in Jacksonville, Florida.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Dream Finders Homes, Inc. has a Value Score of 91, which is considered to be undervalued.

When you look at Dream Finders Homes, Inc.’s price-to-sales ratio at 0.33 compared to the industry median at 0.65, this company has a lower price relative to revenue compared to its peers. This could make Dream Finders Homes, Inc.’s stock more attractive for value investors.

Dream Finders Homes, Inc.’s price-earnings ratio is 7.10 compared to the industry median at 13.00. This means it has a lower share price relative to earnings compared to its peers. This could make Dream Finders Homes, Inc. more attractive for value investors.

Now, let’s assess Dream Finders Homes, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 11.4, when compared to the industry median of 11.1, the company may be considered overvalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Dream Finders Homes, Inc.’s shareholder yield is lower than its industry median ratio of 1.85%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Dream Finders Homes, Inc.’s price-to-book ratio is lower than its industry median ratio of 1.16. This could make Dream Finders Homes, Inc. more attractive to investors looking for a new addition to their portfolio.

Ethan Allen Interiors Inc.’s Value Grade

Value Grade:

Metric Score ETD Industry Median
Price/Sales 31 0.96 0.65
Price/Earnings 28 13.0 13.0
EV/EBITDA 48 12.5 11.1
Shareholder Yield 7 8.0% 1.9%
Price/Book Value 31 1.19 1.16
Price/Free Cash Flow 95 149.5 15.8

Ethan Allen Interiors Inc. operates as an interior design company, and manufacturer and retailer of home furnishings in the United States and internationally. The company operates through two segments, Wholesale and Retail. It offers case goods items, such as beds, dressers, armoires, tables, chairs, buffets, entertainment units, home office furniture, and wooden accents; upholstery comprising fabric-covered items, such as sleepers, recliners and other motion furniture, chairs, ottomans, custom pillows, sofas, loveseats, cut fabrics, and leather; and window treatments and drapery hardware, wall decors, florals, lighting, clocks, mattresses, bedspreads, throws, pillows, decorative accents, area rugs, flooring, wall coverings, and outdoor furnishings. The company also sells third-party furniture protection plans and other miscellaneous product. It markets and sells its products under the Ethan Allen brand through design centers and independent retailers, as well as through ethanallen.com website. Ethan Allen Interiors Inc. was founded in 1932 and is headquartered in Danbury, Connecticut.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Ethan Allen Interiors Inc. has a Value Score of 65, which is considered to be undervalued.

Ethan Allen Interiors Inc.’s price-earnings ratio is 13.0 compared to the industry median at 13.0. This means that it has a higher price relative to its earnings compared to its peers. This makes Ethan Allen Interiors Inc. fairly attractive for value investors.

Ethan Allen Interiors Inc.’s price-to-book ratio is lower than its peers. This could make Ethan Allen Interiors Inc. fairly attractive for value investors when compared to the industry median at 1.16.

You can read more about Ethan Allen Interiors Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Toll Brothers, Inc.’s Value Grade

Value Grade:

Metric Score TOL Industry Median
Price/Sales 37 1.28 0.65
Price/Earnings 18 10.5 13.0
EV/EBITDA 24 8.0 11.1
Shareholder Yield 12 5.8% 1.9%
Price/Book Value 44 1.65 1.16
Price/Free Cash Flow 25 10.6 15.8

Toll Brothers, Inc., together with its subsidiaries, designs, builds, markets, sells, and arranges finance for a range of detached and attached homes in luxury residential communities in the United States. It designs, builds, markets, and sells condominiums through Toll Brothers City Living. The company also develops a range of single-story living and first-floor primary bedroom suite home designs, as well as communities with recreational amenities, such as golf courses, marinas, pool complexes, country clubs, and fitness and recreation centers; and develops, operates, rents apartments and student housing communities. In addition, it provides various interior fit-out options, such as flooring, wall tile, plumbing, cabinets, fixtures, appliances, lighting, and home-automation and security technologies. Further, the company owns and operates architectural, engineering, mortgage, title, land development, insurance, smart home technology, landscaping, lumber distribution, house component assembly, and component manufacturing operations. It serves luxury first-time, move-up, empty-nester, active-adult, and second-home buyers. The company was founded in 1967 and is headquartered in Fort Washington, Pennsylvania.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Toll Brothers, Inc. has a Value Score of 89, which is considered to be undervalued.

Toll Brothers, Inc.’s price-earnings ratio is 10.5 compared to the industry median at 13.0. This means that it has a lower price relative to its earnings compared to its peers. This makes Toll Brothers, Inc. more attractive for value investors.

Toll Brothers, Inc.’s price-to-book ratio is lower than its peers. This could make Toll Brothers, Inc. more attractive for value investors when compared to the industry median at 1.16.

You can read more about Toll Brothers, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

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Other Household Durables Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Household Durables stocks as well as other industrys.

Choosing Which of the 3 Best Household Durables Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

  • Dream Finders Homes, Inc. stock has a Value Grade of A.
  • Ethan Allen Interiors Inc. stock has a Value Grade of B.
  • Toll Brothers, Inc. stock has a Value Grade of A.

Now that you have a bit more background about each of the 3 undervalued stocks in the Household Durables industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

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Additional Resources About Household Durables Stocks

Want to learn more about Household Durables stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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