RENT Valuation

Rent the Runway Inc

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4.300

0(0.000%)1D

Overview
Forecast
Valuation
Earnings

RENT Relative Valuation

RENT'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, RENT is overvalued; if below, it's undervalued.

Historical Valuation

Rent the Runway Inc (RENT) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.06 is considered Undervalued compared with the five-year average of -1.28. The fair price of Rent the Runway Inc (RENT) is between 7.27 to 10.81 according to relative valuation methord. Compared to the current price of 4.30 USD , Rent the Runway Inc is Undervalued By 40.82%.

Relative Value

Fair Zone

7.27-10.81

Current Price：4.30

40.82%

Undervalued

-0.17

Trailing

Forward

9.78

EV/EBITDA

Rent the Runway Inc. (RENT) has a current EV/EBITDA of 9.78. The 5-year average EV/EBITDA is 7.61. The thresholds are as follows: Strongly Undervalued below -91.76, Undervalued between -91.76 and -42.07, Fairly Valued between 57.30 and -42.07, Overvalued between 57.30 and 106.99, and Strongly Overvalued above 106.99. The current Forward EV/EBITDA of 9.78 falls within the Historic Trend Line -Fairly Valued range.

-5.35

EV/EBIT

Rent the Runway Inc. (RENT) has a current EV/EBIT of -5.35. The 5-year average EV/EBIT is -5.36. The thresholds are as follows: Strongly Undervalued below -9.97, Undervalued between -9.97 and -7.67, Fairly Valued between -3.05 and -7.67, Overvalued between -3.05 and -0.74, and Strongly Overvalued above -0.74. The current Forward EV/EBIT of -5.35 falls within the Historic Trend Line -Fairly Valued range.

0.06

Rent the Runway Inc. (RENT) has a current PS of 0.06. The 5-year average PS is 0.54. The thresholds are as follows: Strongly Undervalued below -0.86, Undervalued between -0.86 and -0.16, Fairly Valued between 1.24 and -0.16, Overvalued between 1.24 and 1.95, and Strongly Overvalued above 1.95. The current Forward PS of 0.06 falls within the Historic Trend Line -Fairly Valued range.

0.00

P/OCF

Rent the Runway Inc. (RENT) has a current P/OCF of 0.00. The 5-year average P/OCF is -8.03. The thresholds are as follows: Strongly Undervalued below -31.63, Undervalued between -31.63 and -19.83, Fairly Valued between 3.77 and -19.83, Overvalued between 3.77 and 15.57, and Strongly Overvalued above 15.57. The current Forward P/OCF of 0.00 falls within the Historic Trend Line -Fairly Valued range.

-0.75

P/FCF

Rent the Runway Inc. (RENT) has a current P/FCF of -0.75. The 5-year average P/FCF is -2.70. The thresholds are as follows: Strongly Undervalued below -8.30, Undervalued between -8.30 and -5.50, Fairly Valued between 0.10 and -5.50, Overvalued between 0.10 and 2.90, and Strongly Overvalued above 2.90. The current Forward P/FCF of -0.75 falls within the Historic Trend Line -Fairly Valued range.

Rent the Runway Inc (RENT) has a current Price-to-Book (P/B) ratio of -0.08. Compared to its 3-year average P/B ratio of 0.54 , the current P/B ratio is approximately -115.22% higher. Relative to its 5-year average P/B ratio of 2.16, the current P/B ratio is about -103.81% higher. Rent the Runway Inc (RENT) has a Forward Free Cash Flow (FCF) yield of approximately -251.52%. Compared to its 3-year average FCF yield of -169.09%, the current FCF yield is approximately 48.76% lower. Relative to its 5-year average FCF yield of -138.48% , the current FCF yield is about 81.63% lower.

-0.08

P/B

Median3y

0.54

Median5y

2.16

-251.52

FCF Yield

Median3y

-169.09

Median5y

-138.48

Competitors Valuation Multiple

The average P/S ratio for RENT's competitors is 0.21, providing a benchmark for relative valuation. Rent the Runway Inc Corp (RENT) exhibits a P/S ratio of 0.06, which is -72.38% above the industry average. Given its robust revenue growth of -7.20%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Tokyo Lifestyle Co Ltd

Lulu's Fashion Lounge Holdings Inc

Innovative Eyewear Inc

0.84

18.52%

9.19M

Performance Decomposition

Market capitalization of RENT decreased by 67.72% over the past 1 year. The primary factor behind the change was an decrease in Margin Expansion from -29.33 to -37.50.

The secondary factor is the Revenue Growth, contributed -7.20%to the performance.

Overall, the performance of RENT in the past 1 year is driven by Margin Expansion. Which is more sustainable.

-7.20%

75.00M → 69.60M

Revenue Growth

27.86%

-29.33 → -37.50

Margin Expansion

-88.38%

-1.92 → -0.22

P/E Change

-67.72%