ARHS
Arhaus, Inc.
$10.22
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 11.2% below fair value
You pay
$10.22
Bear
$10.08
Fair
$11.52
Bull
$12.96
Bear
$10.08
-1.4%
$0.48 × 21x P/E
Fair
$11.52
+12.7%
$0.48 × 24x P/E
Bull
$12.96
+26.7%
$0.48 × 27x P/E
Adjust Assumptions
24.0x
0.48$
Key Value Driver
Normalized P/E multiple (24x base case)
Implied Market Multiple
21.3x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (14 analysts)
$10.38
Divergence from AlphaVal
11%
Summary
Applying a 24x P/E to adjusted EPS of $0.48, the base-case value is $11.52 per share.
Warnings
The company pays out 177% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples