RH · Intrinsic value
Is RH (RH) overvalued or undervalued?
RH (RH) trades at the delayed market price of $114.03 a share. That price already implies revenue growth of 3.4% a year for 5 years. TickerWorth's fair value is $156.38 a share (27% below fair value), as of Oct 20, 2026. It is a model estimate, and every input behind it is sourced below.
Model by Miraaj Patel · generated from SEC filings and market data · Updated Oct 20, 2026 · How these pages are made
Is RH undervalued?
- Fair value
- $156.38
- Market price
- $114.03
- Upside to fair value
- +37.1%
- Verdict
- 27% below fair value
Reverse DCF: Today's price implies revenue growth of 3.4% a year for 5 years; our model assumes 3.8% a year on average over the same horizon.
What is RH's TickerWorth Score?
Middle of the pack — real strengths and real weaknesses
Compared with Consumer Cyclical companies in US
Its strongest point: trades below our estimate of what it's worth. Its weakest: balance sheet looks stretched.
- Value · 52 of 100
Cheaper than 52% of Consumer Cyclical companies in US
- Price vs worth · 80 of 100
- Quality · 53 of 100
More profitable than 53% of Consumer Cyclical companies in US
- Financial health · 12 of 100
Financially stronger than 12% of Consumer Cyclical companies in US
- Growth · 52 of 100
Growing faster than 52% of Consumer Cyclical companies in US
- Momentum · 11 of 100
Outperformed 11% of Consumer Cyclical companies in US over the past year
Confidence: High confidence · Scored
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RH DCF valuation: where the gap comes from
At a recent price of $114.03, RH (RH) trades 27% below TickerWorth's blended fair value of $156.38 per share — a discounted-cash-flow model cross-checked against peer multiples and asset value — meaning the market currently prices RH undervalued vs our estimate of what the business is intrinsically worth. Our fair value sits above the market, an implied +37.1% move to close the gap if the business performs in line with our assumptions. This is an educational model, not a price target or a recommendation — the value moves with the inputs, which you can test yourself using the WACC slider below.
Read the full reasoning
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values RH at about $123.91 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts RH's projected free cash flows at a weighted-average cost of capital (WACC) of 8.7%, with a long-run terminal growth rate of 2.5%. About 76% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 3.4% annual revenue growth for RH. Our base case instead compounds to about 3.8% a year over the same forecast, so the market's implied growth is broadly in line with our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, RH's modeled DCF value ranges from about $58.52 to $277.40 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what RH would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of RH's intrinsic value. Figures update as new filings and prices come in.
Every input behind RH's DCF
| Input | Value |
|---|---|
| Base-year revenueRH FY2025 10-K (accession 0001104659-26-037992): us-gaap:RevenueFromContractWithCustomerIncludingAssessedTax, FY2025 full year. | $3,439,540,000 |
| Base EBIT marginRH FY2025 10-K (accession 0001104659-26-037992): us-gaap:OperatingIncomeLoss 387,268,000 / revenue 3,439,536,000 = 11.26%, FY2025. | 11.3% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 4% → 4% → 4% → 4% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.2% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 1.86 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesRH FY2025 10-K (accession 0001104659-26-037992): WeightedAverageNumberOfDilutedSharesOutstanding = 19,791,251 shares, FY2025. | 20M |
| Market priceLast known price · as of 2026-10-20 18:23 UTC | $114.03 |
Change RH's assumptions
The discount-rate dial and the editable model
ProChange growth, margin and WACC yourself — Pro (7-day free trial, card required).
What does RH do?
What does it do?
RH, together with its subsidiaries, operates as a retailer and lifestyle brand in the home furnishings market in the United States, Canada, the United Kingdom, Germany, Belgium, and Spain. The company operates in three segments: RH Segment, Waterworks, and Real Estate. It operates in the Specialty Retail industry (Consumer Cyclical sector), headquartered in United States. The company employs roughly 6,510 people.
How does it make money?
The business turns $3.4B in annual revenue into profit. Out of every $100 of sales, about $7 is left as operating profit (operating margin of 7.2%), after a 43% gross margin on the products/services it sells. After all costs, taxes and interest, 3.2% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks stretched: carries heavy debt (34.1× equity), can just cover its short-term bills (1.1× current ratio), and is currently profitable.
Who at RH filed insider trades?
| Date | Insider | Relationship | What happened | Value | Filing |
|---|---|---|---|---|---|
| DEMILIO MARK S | Director | Open-market sale | $132,000.00 | Form 4 for DEMILIO MARK S (opens sec.gov in a new tab) | |
| DEMILIO MARK S | Director | Open-market sale | $219,842.10 | Form 4 for DEMILIO MARK S (opens sec.gov in a new tab) | |
| DEMILIO MARK S | Director | Open-market sale | $191,984.00 | Form 4 for DEMILIO MARK S (opens sec.gov in a new tab) | |
| FRIEDMAN GARY G | Director, CHAIRMAN & CEO, 10% owner | Open-market sale | $912,304.23 | Form 4 for FRIEDMAN GARY G (opens sec.gov in a new tab) | |
| FRIEDMAN GARY G | Director, CHAIRMAN & CEO, 10% owner | Open-market sale | $500,561.07 | Form 4 for FRIEDMAN GARY G (opens sec.gov in a new tab) | |
| FRIEDMAN GARY G | Director, CHAIRMAN & CEO, 10% owner | Open-market sale | $62,664.48 | Form 4 for FRIEDMAN GARY G (opens sec.gov in a new tab) |
A disclosure, not a signal to trade. Source: SEC EDGAR (Form 4). Older filings and the 90-day buying-and-selling read are part of Pro. See plans
Common questions
What is RH's intrinsic value?
TickerWorth's blended fair value for RH (RH) is $156.38 per share, versus a market price of $114.03 (27% below fair value).
Is RH overvalued or undervalued?
On our blended fair value RH looks undervalued vs fair value at $114.03. This is an educational estimate, not advice.
What discount rate is used for RH?
A WACC of 8.7% and a terminal growth rate of 2.5%.
Is RH stock undervalued?
TickerWorth's fair value for RH (RH) is $156.38 against a market price of $114.03. Our read: 27% below fair value. This is a model estimate, not investment advice.
RH DCF valuation and fair value
Our fair value for RH (RH) is $156.38, built on a 8.7% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into RH stock?
Today's price implies revenue growth of 3.4% a year for 5 years; our model assumes 3.8% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $114.03. A model estimate, not investment advice.
RH insider trading
The most recent insider filing (SEC Form 4) for RH (RH): DEMILIO MARK S, Director, open-market sale on 2026-09-22. The latest filings are listed on this page. A disclosure, not a signal to trade.
More stocks below our fair value
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.