RH
Rh
$112.99
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 31.0% below fair value
You pay
$112.99
Bear
$143.22
Fair
$163.68
Bull
$184.14
Bear
$143.22
+26.8%
$10.23 × 14x P/E
Fair
$163.68
+44.9%
$10.23 × 16x P/E
Bull
$184.14
+63.0%
$10.23 × 18x P/E
Adjust Assumptions
16.0x
10.23$
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
11.0x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (37 analysts)
$166.43
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