RH Valuation

Add to Watchlist

Advanced Chart

225.670

-3.55(-1.549%)1D

Overview
Forecast
Valuation
Earnings

RH Relative Valuation

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

Historical Valuation

RH (RH) is now in the Fair zone, suggesting that its current forward PE ratio of 18.96 is considered Fairly compared with the five-year average of 25.37. The fair price of RH (RH) is between 194.77 to 366.15 according to relative valuation methord.

Relative Value

Fair Zone

194.77-366.15

Current Price：225.67

Fair

18.96

Trailing

Forward

10.93

EV/EBITDA

RH. (RH) has a current EV/EBITDA of 10.93. The 5-year average EV/EBITDA is 12.54. The thresholds are as follows: Strongly Undervalued below 8.04, Undervalued between 8.04 and 10.29, Fairly Valued between 14.79 and 10.29, Overvalued between 14.79 and 17.04, and Strongly Overvalued above 17.04. The current Forward EV/EBITDA of 10.93 falls within the Historic Trend Line -Fairly Valued range.

15.75

EV/EBIT

RH. (RH) has a current EV/EBIT of 15.75. The 5-year average EV/EBIT is 16.16. The thresholds are as follows: Strongly Undervalued below 8.67, Undervalued between 8.67 and 12.41, Fairly Valued between 19.91 and 12.41, Overvalued between 19.91 and 23.65, and Strongly Overvalued above 23.65. The current Forward EV/EBIT of 15.75 falls within the Historic Trend Line -Fairly Valued range.

1.17

RH. (RH) has a current PS of 1.17. The 5-year average PS is 2.13. The thresholds are as follows: Strongly Undervalued below 0.58, Undervalued between 0.58 and 1.35, Fairly Valued between 2.91 and 1.35, Overvalued between 2.91 and 3.69, and Strongly Overvalued above 3.69. The current Forward PS of 1.17 falls within the Undervalued range.

7.65

P/OCF

RH. (RH) has a current P/OCF of 7.65. The 5-year average P/OCF is 13.96. The thresholds are as follows: Strongly Undervalued below 4.05, Undervalued between 4.05 and 9.00, Fairly Valued between 18.91 and 9.00, Overvalued between 18.91 and 23.87, and Strongly Overvalued above 23.87. The current Forward P/OCF of 7.65 falls within the Undervalued range.

15.10

P/FCF

RH. (RH) has a current P/FCF of 15.10. The 5-year average P/FCF is 40.13. The thresholds are as follows: Strongly Undervalued below -127.45, Undervalued between -127.45 and -43.66, Fairly Valued between 123.92 and -43.66, Overvalued between 123.92 and 207.72, and Strongly Overvalued above 207.72. The current Forward P/FCF of 15.10 falls within the Historic Trend Line -Fairly Valued range.

RH (RH) has a current Price-to-Book (P/B) ratio of -38.16. Compared to its 3-year average P/B ratio of -14.27 , the current P/B ratio is approximately 167.46% higher. Relative to its 5-year average P/B ratio of -0.43, the current P/B ratio is about 8839.84% higher. RH (RH) has a Forward Free Cash Flow (FCF) yield of approximately -4.01%. Compared to its 3-year average FCF yield of -0.17%, the current FCF yield is approximately 2311.46% lower. Relative to its 5-year average FCF yield of 1.69% , the current FCF yield is about -337.16% lower.

-38.16

P/B

Median3y

-14.27

Median5y

-0.43

-4.01

FCF Yield

Median3y

-0.17

Median5y

1.69

Competitors Valuation Multiple

The average P/S ratio for RH's competitors is 0.59, providing a benchmark for relative valuation. RH Corp (RH) exhibits a P/S ratio of 1.17, which is 98.30% above the industry average. Given its robust revenue growth of 11.97%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Advance Auto Parts Inc

Academy Sports and Outdoors Inc

Asbury Automotive Group Inc

0.25

2.99%

4.95B

Performance Decomposition

Market capitalization of RH decreased by 32.52% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 15.49 to 54.78.

The secondary factor is the Revenue Growth, contributed 11.97%to the performance.

Overall, the performance of RH in the past 1 year is driven by P/E Change. Which is more unsustainable.

11.97%

726.96M → 813.95M

Revenue Growth

-298.00%

-0.50 → 0.99

Margin Expansion

253.51%

15.49 → 54.78

P/E Change

-32.52%