Market Pulse44Neutral

RhOpportunity Rank #117(RH) Intrinsic Value & DCF Analysis (2026)

Current Price

$146.71

Last updated: Jun 23, 2026

Price vs Intrinsic Value

$146.71
Price
$368.15
Intrinsic Value
Undervalued by 151%MOS: $294.52

Fundamental Score

46/100
Bearish

Weighted across 6 signals

Narrative Score

56/100
Improving

No change vs previous

Trend Score

46/100
Neutral

As of 2026-06-22

The intrinsic value of Rh (RH) is estimated at $368.15 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $146.71, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 6.51% long-term growth rate and a 10.69% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of Rh (RH) is estimated at $368.15 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $146.71, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 6.51% long-term growth rate and a 10.69% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$368.15
▲ 150.94% upside
20% margin of safety: $294.52
Years: 10Growth Rate: 6.51%
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Capital Efficiency

Average Quarterly ROIC
2.65%
Cost of Capital (estimated)11%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

46/100
BearishWeighted across 6 signals
DCF Discount
150.9% discount to price
100
FCF Yield
21.6% trailing FCF yield
100
ROIC vs WACC
ROIC 2.7% vs WACC 11.0% (0.2x)
12
Net Debt / FCF
3.9x net debt to FCF
0
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
-0.2% 5Y FCF CAGR (adjusted)
0
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Net Debt / FCF.

Narrative Details

56/100
Improving
Vs 6-Month Baseline:High (82nd pct)Weighted across 6 recent drivers
Trend: StableConfidence: 85%Updated: 56m ago
Sources: 68 (51 News · 17 Analyst)
Drivers(last 30 days)
40 news sentiment+0.4
2 upgrade headlines-0.2
Earnings miss+0.2
6 regulatory scrutiny+0.1
Macro headwinds+0.1
Legal risk-0.0

Trend Details

46/100
NeutralAs of 2026-06-22308 daily bars used
6M Relative Strength vs SPY-24.8%
Distance from 52-Week High-41.5%
21 EMA vs 50 EMA+1.5%
Price vs 21 EMA56 · +1.0%
Price vs 50 EMA62 · +2.5%
21 EMA vs 50 EMA62 · +1.5%
3M RS vs SPY51 · +0.2%
6M RS vs SPY6 · -24.8%
Distance from 52W High17 · -41.5%

Investment Coach

Updating... 12d ago
WATCHConfidence: 48%
Thesis
RH is currently trading at a significant discount with an estimated fair value 165.7% above its current price, supported by a healthy free cash flow yield of 23.3%. However, returns are trailing the estimated cost of capital, indicating potential challenges in value creation.
Key Risk
The key risk is the company's return on invested capital (ROIC) remaining below its weighted average cost of capital (WACC), which could undermine long-term profitability.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC vs WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 6.51%5 Year CAGR (Adjusted): -0.21%

Free Cash Flow (in millions)

TTM2025202420232022202120202019201820172016201520142013201220112010200820072006
$599$248$472$577$847$612$433$330$668$236$260$202$181$45$43$28$59-$8$15$34

How Intrinziq Estimates Fair Value

Intrinziq estimates Rh's intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

RhConsumer Cyclical

RH, along with its various associated businesses, functions as a prominent retailer specializing in home furnishings. Its extensive product portfolio spans categories such as furniture, lighting, textiles, bathware, decor, outdoor and garden essentials, and specialized furnishings for children and teens. The company reaches its clientele through diverse sales channels. These include its distinctive retail galleries, the curated 'Source Books' catalogs, and an extensive online presence via rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com. As of January 29, 2022, RH maintained a significant physical footprint, comprising 67 RH Galleries and 38 RH outlet stores spread across 30 U.S. states, the District of Columbia, and Canada. Furthermore, it managed 14 Waterworks showrooms throughout the United States and the United Kingdom. Historically, the enterprise was known as Restoration Hardware Holdings, Inc. before its rebranding to RH in January 2017. RH was founded in 2011 and its corporate headquarters are situated in Corte Madera, California.