RH (RH) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of RH stock $132, price $131, upside +0.9%, quality 59 out of 100. Rating: fairly valued. Calculated from audited financials with 22 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 9, 2026.
How to read this chart
60‑month range $110.99 – $738.52 · fair‑value band $79.00 – $181.25 · the $130.96 price screens below the $132.10 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. As of Nov 9, 2026.
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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.
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It offers merchandise in various categories, including furniture, lighting, textiles, bath ware, décor, and outdoor and garden furnishings, as well as baby, child, and teen furnishings. The company also operates galleries, interior design studios, outlets, guesthouses, and showrooms.
It sells its products through hospitality, websites, sourcebooks, and trade and contract channels, as well as retail locations and outlets. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017.
RH was founded in 1980 and is headquartered in Corte Madera, California.
Stock analysis
RH (RH) currently trades at $130.96, while our model-based Fair Value estimate is $132.10, so the stock looks roughly fairly valued today (gap 0.9%).
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Valuation
Bull case: the Growth DCF group reads highest at a median of $173.46 per share, and 11 of the 22 models we run sit above the $130.96 price.
Bear case: the Economic Profit group reads lowest at $27.22, and 11 of the 22 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $79.00 (bear) to $181.25 (bull), the price of $130.96 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 59/100 (solid quality), in the Consumer Cyclical sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
RH, reported revenue of $3.4B in FY2026 versus $3.8B in FY2022, a compound −2.2%/yr. Reported net income was $125M in FY2026, compounding −34.8%/yr from FY2022.
Key figures
Market cap $2.6B Mid · P/E ratio 23.1 · P/S ratio 0.75 · EPS (TTM) $5.66 · Net margin 3.2% · Return on equity 281% · Return on assets (EBIT) 11.1% (5-year average) · Operating margin 7.2%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 51 out of 100 (low confidence).
What moves the price
The share trades about 44% below its 52-week high and 18% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −5% fair-value upside, at 1%, RH screens cheaper than that median.
Fair Value models
Bear$79.00Fair Value $132.10Bull$181.25
Price $130.96 · Upside +0.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 9 months old). Earnings retained since then ($4.37 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, one officer or director bought shares worth $1.8M, on Jun 29, 2026. Over the same period, 2 people sold shares worth $22.0M.
SaleMark S DemilioDirector5× since Dec 30, 2025: 13,903 shares, avg. $174.13$2.4MSep 22, 2026
SaleGary G FriedmanCHAIRMAN & CEO, Director, 10% owner125,000 shares at $165.35$20.7MJul 8, 2026
BuyCarlos AlberiniDirector11,388 shares at $160.90$1.8MJun 29, 2026
SaleEri ChayaOfficer, Director3× since Mar 17, 2026: 25,000 shares, avg. $134.82$3.4MMar 31, 202610b5-1 plan
Plus 7 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.58/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+8.1%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−1.4%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.8%
Start year 2021 (pandemic). Over 10 years: +5.0% a year
Revenue growth 28 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.5%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
−7.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year−7.8%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−8.7% vs 11.3%, slowing
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.17% → 11%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+14.5%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+7.5%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +11.9% a year for the price and +5.0% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (94 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: The business shows potential strength from expansion into higher-end Estates galleries and international markets for longer-term demand, yet high leverage with a low equity base remains the key weakness limiting durability amid thin margins.
Main risk: High leverage with a low equity base and already thin net margins risks constraining the company's ability to sustain profitability while carrying pre-opening costs from its expansions.
RH is pushing into higher-end Estates galleries and international markets to build longer-term demand. At the same time, pre-opening costs and elevated fuel expenses continue to weigh on near-term margins. Will the growth from these expansions ultimately lift profitability more than the ongoing cost pressures hold it back?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Specialty Retail · 203 stocks
Beats the industry median on 5/13 measures
Overall it trails its industry peers.
Valuation
Quality Score59 · Above median
Fair Value upside+0.9% · Below median
Profitability
Return on equity (12 months)280.7% · Top 25%
Return on assets2.6% · Below median
Net margin (12 months)3.2% · Above median
Operating margin (12 months)7.2% · Above median
Growth and dividend
Revenue growth (quarter YoY)2.6% · Below median
Balance sheet
Debt / equity39.42× · Highest 25%
Valuation Multiplesvs Specialty Retail median · lower = cheaper
P/E (12 months)23.1× · Pricier than median
P/B42.77× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
P/S (12 months)0.75× · Pricier than median
Price / free cash flow (fiscal year)10.3× · Pricier than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "RH, Fair Value". https://www.fairvalue-calculator.com/stock/RH
Frequently asked questions
Is RH (RH) overvalued or undervalued?
As of Nov 9, 2026, our model estimates a fair value of $132.10 versus a price of $130.96, about +1% upside (fairly valued).
What is the fair value of RH?
Our model-based fair value for RH is $132.10 (as of Nov 9, 2026), built from audited fundamentals. The current price: $130.96.
What is the quality score of RH?
RH has a Quality Score of 59/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for RH (RH)?
Our model-based price target is the fair value of $132.10 (as of Nov 9, 2026) from 22 valuation models. Cautious scenario $79.00, optimistic scenario $181.25. It is a calculation from audited fundamentals, not an analyst target.
What is the RH, stock forecast for 2026?
Our models put fair value at $132.10, about +1% upside versus a price of $130.96 (fairly valued). Cautious scenario $79.00, optimistic scenario $181.25. The calculation is refreshed regularly with new filings.
What is the revenue of RH (RH)?
RH reported trailing-twelve-month revenue of about $3.4B (latest available figure, as of Nov 9, 2026).
What growth is priced into RH (RH)?
For today's price to be fair in a discounted-cash-flow model, RH would have to grow free cash flow by +14.5 % per year for five years (discount rate 11.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +3.8 % per year. As of Nov 9, 2026.
What discount rate (WACC) does the fair value of RH use?
Our models discount RH at 11.9 %: a base by market capitalisation (mid), damped by beta 1.91, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For RH that is +14.5 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (11.9 %) and the same formula as our fair value.
How much growth has RH (RH) delivered so far?
Over the past 5 years revenue at RH grew +3.8 % a year. The price currently implies free-cash-flow growth of +14.5 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of RH (RH) growing?
The median revenue growth in the sector is +4.7 % a year. That is the yardstick for the growth priced into RH (+14.5 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of RH (RH)?
The free-cash-flow yield on the price is 9.74 %: that much free cash flow RH produces per unit of market value. When it exceeds the discount rate of our models (11.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of RH (RH)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For RH it is $132.10 per share (as of Nov 9, 2026), against a price of $130.96. It is the blended result of 22 valuation models in 6 families (DCF Models, Earnings-Based, Multiples, Growth DCF, Economic Profit, Growth Earnings).
Is RH, stock overvalued or undervalued in 2026?
As of Nov 9, 2026, RH trades below its calculated fair value: price $130.96, fair value $132.10, a gap of about +1% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of RH?
No. The price is what the market pays today ($130.96); the fair value is what the company's own numbers justify ($132.10). For RH the two are $1.14 per share apart. That gap is exactly why we show both numbers side by side.
How much is RH, worth?
The market values RH at about $2.6B (market capitalisation, as of Nov 9, 2026). Per share that is $130.96; our models calculate a fair value of $132.10 per share.
What do the bullish and bearish scenarios say about RH?
Our models span a range for RH: cautious scenario $79.00, base $132.10, optimistic $181.25 per share (as of Nov 9, 2026, price $130.96). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of RH?
RH trades at a price-to-earnings ratio of 23.1 (as of Nov 9, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $132.10 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2017 to 2026), reported earnings, 9 of the years ex one-offs: 36.3. Other multiples: PEG 1.0, P/B 42.8, P/S 0.8, EV/EBITDA 11.5.
What is the PEG ratio of RH?
The PEG ratio of RH is 1.00 (P/E divided by earnings growth, as of Nov 9, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of RH (RH)?
Balance-sheet figures for RH (as of Nov 9, 2026): return on equity 280.7%. They feed the Quality Score of 59/100, which measures business quality independently of the share price.
How far is RH from its 52-week high?
RH trades at $130.96, about 44% below its 52-week high of $232.90 and 18% above the low of $110.99 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $132.10 is for.
Which stocks are comparable to RH,?
From the same area (Consumer Cyclical) we also value Alimentation Couche-Tard Inc, Williams-Sonoma, Inc, Ulta Beauty, Inc, Casey's General Stores, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is RH, stock attractive at the current price?
The data as of Nov 9, 2026: price $130.96, calculated fair value $132.10 (+1%), Quality Score 59/100, from 22 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of RH calculated?
We run RH through 22 models from 6 families: DCF Models, Earnings-Based, Multiples, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $132.10 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. RH currently trades 1% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of RH (RH)?
The closing price on Nov 6, 2026 was $130.96. Our model-based fair value is $132.10, about +1% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with RH, right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range ($79.00 to $181.25) leaves room in how you read the outcome.
Where does the earnings growth of RH (RH) come from?
Earnings per share at RH grew +15.0 % a year from 2015 to 2026. Broken into its drivers: revenue per share +13.8 %, EBIT margin +4.8 %, tax rate +3.2 %, residual (interest, one-offs) −6.6 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of RH
How large is the market capitalisation of RH (RH)?
The market capitalisation of RH is $2.6B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of RH (RH)?
The price-to-sales ratio of RH is 0.75 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of RH (RH)?
Earnings per share at RH are $5.66 (price ÷ EPS = P/E 23.1). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of RH (RH)?
The net margin of RH is 3.2% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of RH (RH)?
The return on equity (ROE) of RH is 281% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of RH (RH)?
On an EBIT basis the return on assets of RH is 11.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of RH (RH)?
The operating margin of RH is 7.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at RH (RH)?
Revenue at RH is growing +2.6% versus a year earlier (3y avg −1.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at RH (RH)?
Earnings per share at RH are growing +16.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does RH (RH) carry?
The net debt of RH is $3.9B (fiscal year 2026, ≈ 15.6 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Nov 9, 2026