Walker Greenbank (AIM:WGB) – luxury products, cheap valuation?

The “luxury interior furnishings group” whose brands include Sanderson, Morris & Co., Harlequin, and Zoffany issued a reassuring AGM update today but on closer look the shares look modestly valued. While its’ clear the shares have had a good run over the last few months the current multiple of only 7.5x current year estimates looks mighty cheap. Is there a fear of problems lurking in the luxury world and a slow down in the Group’s key growth markets? Net debt at the 31st January 2012 was only £0.6m, although there was the small matter of a £7m pension deficit.