QualityDipStocks / Consumer Discretionary · Other Specialty Stores
RH RH
Outside our quality screen, so we don’t track its dips. It’s 37% below its 52-week high.
Outside our quality screen, trading well below our fair value estimate, 16% over its Market Value.
Worth knowing
- Share count down 8% in 2 years
From the data on this page, as of the last close. How we pick these
- Fair value est.
- $201.81+38%
- Market Value
- $126.53price +16%
- Off 52-wk high
- −37%
- Risk vs market
- Highbeta 1.93
4 bullish · 5 bearish See why
Repriced or dip?
Mixed signals
The price is 37% below its 52-week high (Jan 16), but the business held up: free cash flow +95.5%, shares outstanding fewer shares, each owns more, earnings per share +2.2%.
Some numbers held up (free cash flow +95.5%, shares outstanding fewer shares, each owns more, earnings per share +2.2%), others slipped (revenue growth rate −6.4 pts). The price is 37% below its 52-week high.
The price is 37% below its 52-week high, and the business changed too: revenue growth rate −6.4 pts.
Within 10% of its 52-week high, so there is no dip to judge yet.
The evidence 9 numbers, high vs now
- Revenue, last 12 months$3.4B → $3.4B (+1.2%)about the same
- Revenue growth rate+9.7% → +3.3% a year (−6.4 pts)changed
- Earnings per share, 12 months$5.55 → $5.67 (+2.2%)held up
- Free cash flow, 12 months$128M → $251M (+95.5%)held up
- Operating margin10.6% → 10.0% (−0.6 pts)about the same
- Shares outstanding−0.7% (fewer shares, each owns more)held up
- Stock vs its sector (Consumer Discretionary)stock −37%, sector median +3% since Jan 16changed
- Price fall vs business numbersprice −37%, revenue/EPS/FCF median +2% (shown, not scored)
- Valuation multipleP/FCF 36.0× at the high → 11.5× now (shown, not scored)
Business numbers as reported at the high (12 months to Nov 1, 2025) vs the latest filing (12 months to Aug 1, 2026). Each measure is scored from −1 (business changed) to +1 (business intact) and weighted: revenue, earnings per share, free cash flow, operating margin, revenue growth rate, share count, net cash and the move vs its sector. 60 or more reads as a dip, 40 or less as a repricing. Analyst estimates are not in our data, so they are not used. How to read it
Data-based read, not advice.
Priced in
How much growth the market assumed at the 52-week high, the low and today (a reverse DCF).
At the high ($232.90, Jan 16) the price assumed about 18%/yr free-cash-flow growth; at the low ($110.99, Oct 14) about −7%; today about −3%. The last 3 years delivered 3%/yr (free cash flow).
Dashed line: what the last 3 years delivered, 3%/yr (free cash flow)
| High | Low | Now | |
|---|---|---|---|
| Price | $232.90Jan 16 | $110.99Oct 14 | $146.52 |
| Implied growth | +18% | −7% | −3% |
| P/E | 42.0× | 19.6× | 25.8× |
| P/FCF | 36.0× | 8.7× | 11.5× |
What this means: the higher the implied growth, the more the price already counts on. If today's number sits well below what the business has delivered, the market expects less than its track record.
How it’s computed
Reverse DCF: the same 10-year free-cash-flow model as our fair value estimate (9.5% discount rate, growth for years 1–5 fading to 3% by year 10, 3% after), solved for the growth that makes it equal the market value at each price. For the high and the low we use only the filings that were public on that day, so nothing from a later report leaks back. Market value = that close × diluted shares. P/E = market value / 12-month net income; Price / FCF = market value / 12-month free cash flow; EV / Sales = (market value + debt − cash) / 12-month revenue. Hidden when the share count moved over 20% (split, merger), free cash flow is negative, or the company reports in another currency.
Valuation
What we estimate it's worth, and how it ranks on value vs every stock we cover.
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 3.0% ±2 points. Bear = 10.5% and 1.0%; bull = 8.5% and 5.0% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price is below even the bear case.
What the price implies To be worth today’s price, RH’s free cash flow would need to shrink about 3% a year for five years; our estimate uses 3%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 31 to Nov 2, 252 sessions). Beta = how much RH moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Swings much more than the market, and its own price swings are 4.8× the S&P 500’s.
- Beta vs S&P 500
- 1.93
- Volatility
- 61% vs 13% SPY
- Correlation SPY
- 0.40
- Correlation QQQ
- 0.30
How it ranks
Where RH stands vs every one of the 1,996 stocks we cover that has the number. Longer bar = better.
Top quarter on 1 of 5 measures
- Discount to fair value estimate38% · price below our base caseTop 26%of 1,314
- Free cash flow yield8.7% · free cash flow vs market capTop 15%of 1,391
- Dividends + buybacks yield0% · cash paid out or used to retire shares, vs market capLowest 1%of 1,836
- Revenue growth, last 12 months+3.3% · vs the 12 months beforeLowest 22%of 1,814
- Operating margin10% · of sales kept as operating profitLowest 43%of 1,288
From SEC filings and our fair value estimate model. A ranking, not advice.
Valuation details
DCF $201.81 · MV $126.53 · FCF value $340.14
Assumes 3.0% growth for 5 years (revenue grew -1.4% a year FY23–FY26; floored at 3%), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $12.74 a share (trailing 12 months to Aug 1, 2026), from the 10-Q filed Sep 10, 2026.
Fundamentals
The business itself: sales, profits, cash and debt, from SEC filings.
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 4 of 5
ValuationOur DCF fair value estimate is $201.81, 38% above the price.
GrowthDiluted EPS grew 74% to $6.31 in FY2026.
ValuationFree-cash-flow yield of 8.7% (price / FCF 11.5×): $251M of free cash in the last 12 months.
ProfitabilityGross margin of 44%, above the 37% median for the 254 Consumer Discretionary companies we cover.
Top bearish points 5 of 5
GrowthSales grew only −1.4% a year from FY2023 to FY2026.
ValuationPrice / book of 23.9×, above the 3.2× median for the 336 Consumer Discretionary companies we cover.
GrowthSales grew 3.3% over the last 12 months, below the 6.7% median for the 376 Consumer Discretionary companies we cover.
ValuationTrades 15.8% above its Market Value of $126.53, the average price paid since the Sep 10 filing.
QualityDoesn’t pass our quality screen: net debt 9.3× EBITDA (limit 3×).
All fundamentals
P/E 25.8 · FCF yield 8.7% · Sales +3%
Valuation
- P/E
- 25.8×Consumer Discretionary median 20.7×
- Price / FCF
- 11.5×
- FCF yield
- 8.7%
- EV / EBITDA
- n/aD&A or debt not tagged in SEC data
- Price / sales
- 0.84×
- Price / book
- 23.95×
- Market cap
- $2.9Bprice × diluted shares
- Enterprise value
- n/anot reported in its SEC filings
Growth
- Revenue, 12 months
- $3.4B
- Sales growth, 12 months
- +3.3%vs the 12 months before
- Sales growth, 3 yrs
- −1.4%/yrfrom FY2023
- Diluted EPS, 12 months
- $5.66
- EPS growth, last FY
- +74.3%
- Net income, 12 months
- $112M
- Net income growth
- +4%12 months vs before
Profitability
- Gross margin
- 44.3%
- Operating margin
- 10.0%
- Net margin
- 3.2%
- FCF margin
- 7.3%
- Return on equity
- n/an/m: very small or negative equity
- Return on invested capital
- n/aoperating income, debt, equity or cash not tagged
Balance sheet
- Cash & short-term inv.
- $125M
- Total debt
- n/anot reported in its SEC filings
- Net cash
- n/acash or debt not tagged in SEC data
- Debt / equity
- n/adebt or equity not tagged in SEC data
- Interest coverage
- n/ainterest expense not tagged in SEC data
Cash flow & returns
- Free cash flow, 12 months
- $251M
- FCF growth, 12 months
- n/anot reported in its SEC filings
- Dividend yield
- 0%
- Payout ratio
- n/anot reported in its SEC filings
- Buybacks, 12 months
- n/anot reported in its SEC filings
- Share count, 1 year
- −0.3%diluted shares vs a year ago
- Stock-based comp
- $44M
Trailing 12 months to Aug 1, 2026; balance sheet at Aug 1, 2026. From RH’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
The business
FCF $0.3B · Sales +3%
- Free cash flow, 12 months$0.3B
- Free-cash-flow yield8.7%
- Free-cash-flow margin8%
- Gross margin43%
- Operating margin7%
- Return on invested capital5%
- Return on equity281%
- Sales growth (latest quarter vs year-ago quarter)+3%
- Net debt / EBITDA9.3×
Chart & levels
Where the price is vs its key levels and trends.
Key levels
Every level vs today’s $146.52
- 52-wk lowlowest close, 1 year$110.99−24.2%
- Market Valueavg paid since Sep 10$126.53−13.6%
- PriceMon Nov 2 close$146.52you are here
- Fair value est.base case$201.81+37.7%
- 52-wk highhighest close, 1 year$232.90+59.0%
Momentum & 52-week range
RSI 65 · 5 days +8.0%
Signals
Reversal signal setups, the public ledger and the next earnings date.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
RH is outside our quality screen
One text when a published rule fires on one of the 332 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.
Voices & buzz
Who is talking about it, and how it compares with peers.
Who’s talking about it
Notable investors, executives, analysts and public figures on RH in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 3, 1:01 PM ET.
Compare with peers
Closest in size in Other Specialty Stores
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.