RH
Rh
$136.42
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Fair Value
Trading 21.3% below fair value
You pay
$136.42
Bear
$151.74
Fair
$173.42
Bull
$195.10
Bear
$151.74
+11.2%
$10.23 × 14x P/E
Fair
$173.42
+27.1%
$10.23 × 16x P/E
Bull
$195.10
+43.0%
$10.23 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
13.3x
Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $196.14 from 37 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $173.42 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