Market Pulse50Neutral

RhOpportunity Rank #157(RH) Intrinsic Value & DCF Analysis (2026)

Current Price

$130.17

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$130.17
Price
$302.70
Intrinsic Value
Undervalued by 133%MOS: $242.16

Fundamental Score

49/100
Bearish

Weighted across 6 signals

Narrative Score

58/100
Improving

No change vs previous

The intrinsic value of Rh (RH) is estimated at $302.70 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $130.17, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 6.29% long-term growth rate and a 10.50% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of Rh (RH) is estimated at $302.70 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $130.17, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 6.29% long-term growth rate and a 10.50% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$302.70
▲ 132.54% upside
20% margin of safety: $242.16
Years: 10Growth Rate: 6.29%
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Capital Efficiency

Average Quarterly ROIC
3.33%
Cost of Capital (estimated)7%
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

49/100
BearishWeighted across 6 signals
DCF Discount
132.5% discount to price
100
FCF Yield
22.4% trailing FCF yield
100
ROIC vs WACC
ROIC 3.3% vs WACC 7.0% (0.5x)
24
Net Debt / FCF
4.7x net debt to FCF
0
Buybacks
Share count growing
30
FCF CAGR (5Y)
4.8% 5Y FCF CAGR
25
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Net Debt / FCF.

Narrative Details

58/100
Improving
Vs 6-Month Baseline:High (83rd pct)Weighted across 3 recent drivers
Trend: StableConfidence: 69%Updated: 2h ago
Sources: 22 (18 News · 4 Analyst)
Drivers(last 30 days)
16 news sentiment+0.5
2 regulatory scrutiny+0.2
4 analyst reiterations0.0

Investment Coach

Updated 17h ago
WATCHConfidence: 48%
Thesis
RH's current price significantly undervalues the company with an estimated fair value 150.9% higher, supported by a healthy free cash flow yield of 22.4%. However, returns are trailing the estimated cost of capital, indicating potential operational challenges.
Key Risk
The key risk is the negative spread between ROIC and WACC, which may hinder sustainable value creation.
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: 6.29%5 Year CAGR (Adjusted): -1.15%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012201120102008200720062005
$547$248$472$577$847$612$433$330$668$236$260$202$181$45$43$28$59-$8$15$34$4

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, together with its subsidiaries, operates as a retailer in the home furnishings. It offers products in various categories, including furniture, lighting, textiles, bathware, decor, outdoor and garden, and child and teen furnishings. The company provides its products through its retail galleries; and Source Books, a series of catalogs, as well as online through rh.com, rhbabyandchild.com, rhteen.com, and rhmodern.com, as well as waterworks.com. As of January 29, 2022, it operated a total of 67 RH Galleries and 38 RH outlet stores in 30 states in the District of Columbia and Canada, as well as 14 Waterworks showrooms throughout the United States and the United Kingdom. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was incorporated in 2011 and is headquartered in Corte Madera, California.