REAL Relative Valuation
REAL's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, REAL is overvalued; if below, it's undervalued.
Historical Valuation
RealReal Inc (REAL) is now in the Overvalued zone, suggesting that its current forward PS ratio of 2.47 is considered Overvalued compared with the five-year average of -27.39. The fair price of RealReal Inc (REAL) is between 1.44 to 14.54 according to relative valuation methord. Compared to the current price of 16.37 USD , RealReal Inc is Overvalued By 12.59%.
Relative Value
Fair Zone
1.44-14.54
Current Price:16.37
12.59%
Overvalued
-360.73
PE
1Y
3Y
5Y
41.78
EV/EBITDA
RealReal Inc. (REAL) has a current EV/EBITDA of 41.78. The 5-year average EV/EBITDA is 21.00. The thresholds are as follows: Strongly Undervalued below -96.99, Undervalued between -96.99 and -37.99, Fairly Valued between 79.99 and -37.99, Overvalued between 79.99 and 138.99, and Strongly Overvalued above 138.99. The current Forward EV/EBITDA of 41.78 falls within the Historic Trend Line -Fairly Valued range.
119.50
EV/EBIT
RealReal Inc. (REAL) has a current EV/EBIT of 119.50. The 5-year average EV/EBIT is 42.07. The thresholds are as follows: Strongly Undervalued below -462.11, Undervalued between -462.11 and -210.02, Fairly Valued between 294.17 and -210.02, Overvalued between 294.17 and 546.26, and Strongly Overvalued above 546.26. The current Forward EV/EBIT of 119.50 falls within the Historic Trend Line -Fairly Valued range.
2.47
PS
RealReal Inc. (REAL) has a current PS of 2.47. The 5-year average PS is 1.25. The thresholds are as follows: Strongly Undervalued below -1.23, Undervalued between -1.23 and 0.01, Fairly Valued between 2.49 and 0.01, Overvalued between 2.49 and 3.72, and Strongly Overvalued above 3.72. The current Forward PS of 2.47 falls within the Historic Trend Line -Fairly Valued range.
45.08
P/OCF
RealReal Inc. (REAL) has a current P/OCF of 45.08. The 5-year average P/OCF is 2.53. The thresholds are as follows: Strongly Undervalued below -40.80, Undervalued between -40.80 and -19.13, Fairly Valued between 24.19 and -19.13, Overvalued between 24.19 and 45.85, and Strongly Overvalued above 45.85. The current Forward P/OCF of 45.08 falls within the Overvalued range.
75.98
P/FCF
RealReal Inc. (REAL) has a current P/FCF of 75.98. The 5-year average P/FCF is -19.57. The thresholds are as follows: Strongly Undervalued below -232.98, Undervalued between -232.98 and -126.28, Fairly Valued between 87.14 and -126.28, Overvalued between 87.14 and 193.84, and Strongly Overvalued above 193.84. The current Forward P/FCF of 75.98 falls within the Historic Trend Line -Fairly Valued range.
RealReal Inc (REAL) has a current Price-to-Book (P/B) ratio of -4.79. Compared to its 3-year average P/B ratio of -1.52 , the current P/B ratio is approximately 214.02% higher. Relative to its 5-year average P/B ratio of 1.17, the current P/B ratio is about -507.90% higher. RealReal Inc (REAL) has a Forward Free Cash Flow (FCF) yield of approximately -0.25%. Compared to its 3-year average FCF yield of -26.26%, the current FCF yield is approximately -99.06% lower. Relative to its 5-year average FCF yield of -30.78% , the current FCF yield is about -99.20% lower.
-4.79
P/B
Median3y
-1.52
Median5y
1.17
-0.25
FCF Yield
Median3y
-26.26
Median5y
-30.78
Competitors Valuation Multiple
The average P/S ratio for REAL's competitors is 0.91, providing a benchmark for relative valuation. RealReal Inc Corp (REAL) exhibits a P/S ratio of 2.47, which is 173.06% above the industry average. Given its robust revenue growth of 17.47%, this premium appears unsustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of REAL increased by 72.43% over the past 1 year. The primary factor behind the change was an decrease in Margin Expansion from -12.14 to -31.14.
The secondary factor is the Revenue Growth, contributed 17.47%to the performance.
Overall, the performance of REAL in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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Frequently Asked Questions
Is RealReal Inc (REAL) currently overvalued or undervalued?
RealReal Inc (REAL) is now in the Overvalued zone, suggesting that its current forward PS ratio of 2.47 is considered Overvalued compared with the five-year average of -27.39. The fair price of RealReal Inc (REAL) is between 1.44 to 14.54 according to relative valuation methord. Compared to the current price of 16.37 USD , RealReal Inc is Overvalued By 12.59% .
What is RealReal Inc (REAL) fair value?
REAL's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of RealReal Inc (REAL) is between 1.44 to 14.54 according to relative valuation methord.
How does REAL's valuation metrics compare to the industry average?
The average P/S ratio for REAL's competitors is 0.91, providing a benchmark for relative valuation. RealReal Inc Corp (REAL) exhibits a P/S ratio of 2.47, which is 173.06% above the industry average. Given its robust revenue growth of 17.47%, this premium appears unsustainable.
What is the current P/B ratio for RealReal Inc (REAL) as of Jan 08 2026?
As of Jan 08 2026, RealReal Inc (REAL) has a P/B ratio of -4.79. This indicates that the market values REAL at -4.79 times its book value.
What is the current FCF Yield for RealReal Inc (REAL) as of Jan 08 2026?
As of Jan 08 2026, RealReal Inc (REAL) has a FCF Yield of -0.25%. This means that for every dollar of RealReal Inc’s market capitalization, the company generates -0.25 cents in free cash flow.
What is the current Forward P/E ratio for RealReal Inc (REAL) as of Jan 08 2026?
As of Jan 08 2026, RealReal Inc (REAL) has a Forward P/E ratio of -360.73. This means the market is willing to pay $-360.73 for every dollar of RealReal Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for RealReal Inc (REAL) as of Jan 08 2026?
As of Jan 08 2026, RealReal Inc (REAL) has a Forward P/S ratio of 2.47. This means the market is valuing REAL at $2.47 for every dollar of expected revenue over the next 12 months.