Market Pulse59Neutral

RhOpportunity Rank #177(RH) Intrinsic Value & DCF Analysis (2026)

Current Price

$133.65

Last updated: May 08, 2026

Price vs Intrinsic Value

$133.65
Price
$397.75
Intrinsic Value
Undervalued by 198%MOS: $318.20

Fundamental Score

53/100
Neutral

Weighted across 6 signals

Narrative Score

46/100
Weak

No change vs previous

Trend Score

19/100
Weak

As of 2026-05-08

The intrinsic value of Rh (RH) is estimated at $397.75 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $133.65, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 6.56% long-term growth rate and a 10.65% discount rate, reflecting expected future free cash flow and cost of capital.

The intrinsic value of Rh (RH) is estimated at $397.75 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $133.65, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 6.56% long-term growth rate and a 10.65% discount rate, reflecting expected future free cash flow and cost of capital.

Valuation Details

$397.75
▲ 197.61% upside
20% margin of safety: $318.20
Years: 10Growth Rate: 6.56%
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Capital Efficiency

Average Quarterly ROIC
2.78%
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

53/100
NeutralWeighted across 6 signals
DCF Discount
197.6% discount to price
100
FCF Yield
26.0% trailing FCF yield
100
ROIC vs WACC
ROIC 2.8% vs WACC 7.0% (0.4x)
20
Net Debt / FCF
3.6x net debt to FCF
0
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
1.4% 5Y FCF CAGR
25
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC, Net Debt / FCF.

Narrative Details

46/100
Weak
Vs 6-Month Baseline:Below Avg (32nd pct)Weighted across 5 recent drivers
Trend: Improving upConfidence: 87%Updated: 16h ago
Sources: 71 (58 News · 13 Analyst)
Drivers(last 30 days)
4 legal risk-0.2
6 regulatory scrutiny-0.2
47 news sentiment+0.0
Upgrade headlines-0.0
13 analyst reiterations0.0

Trend Details

19/100
WeakAs of 2026-05-08311 daily bars used
3M Relative Strength vs SPY-43.4%
6M Relative Strength vs SPY-28.3%
Distance from 52-Week High-46.7%
Price vs 21 EMA59 · +1.4%
Price vs 50 EMA26 · -5.0%
21 EMA vs 50 EMA10 · -6.3%
3M RS vs SPY0 · -43.4%
6M RS vs SPY4 · -28.3%
Distance from 52W High7 · -46.7%

Investment Coach

Updated 15h ago
WATCHConfidence: 48%
Thesis
RH is currently trading at a significant discount with an estimated fair value over 200% above its current price, supported by a healthy free cash flow yield of 26%. However, returns are trailing the estimated cost of capital, indicating potential challenges in value creation.
Key Risk
The key risk is that RH's return on invested capital remains below its weighted average cost of capital, 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: 6.56%5 Year CAGR: 1.37%

Free Cash Flow (in millions)

TTM2025202420232022202120202019201820172016201520142013201220112010200820072006
$655$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, 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.