RH
Rh
$143.72
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 12.2% below fair value
You pay
$143.72
Bear
$143.22
Fair
$163.68
Bull
$184.14
Bear
$143.22
-0.3%
$10.23 × 14x P/E
Fair
$163.68
+13.9%
$10.23 × 16x P/E
Bull
$184.14
+28.1%
$10.23 × 18x P/E
Adjust Assumptions
16.0x
10.23$
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
14.0x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (37 analysts)
$167.50
Divergence from AlphaVal
2%
Summary
Applying a 16x P/E to adjusted EPS of $10.23, the base-case value is $163.68 per share.
Warnings
The company's reported profits differ from official accounting profits by 62%. Check what costs are being left out of the adjusted number.
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