RH
Rh
$161.82
Stable Earnings Power
80%
P/Adj-EPS × Normalized Multiple
Mild
·
Conviction
Fair Value
Trading 1.8% below fair value
You pay
$161.82
Bear
$144.22
Fair
$164.83
Bull
$185.43
Bear
$144.22
-10.9%
$10.23 × 14x P/E
Fair
$164.83
+1.9%
$10.23 × 16x P/E
Bull
$185.43
+14.6%
$10.23 × 18x P/E
Key Value Driver
Normalized P/E multiple (16x base case)
Implied Market Multiple
15.8x
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 $167.50 from 37 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $164.83 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