What is RH worth?
With the base-case assumptions below, a discounted cash flow model on RH's reported free cash flow gives $227.88 per share. The share price was $124.17 on September 25, 2026, 46% below that value.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | -1.0% | 10.0% | $143.42 | +15% |
| Base | 4.0% | 9.0% | $227.88 | +84% |
| Bull | 9.0% | 8.0% | $385.61 | +211% |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $287.94 | $306.16 | $328.44 | $356.28 | $392.08 |
| 8.0% | $243.21 | $255.02 | $268.99 | $285.75 | $306.24 |
| 9.0% | $210.48 | $218.56 | $227.88 | $238.76 | $251.62 |
| 10.0% | $185.52 | $191.26 | $197.77 | $205.22 | $213.81 |
| 11.0% | $165.86 | $170.07 | $174.78 | $180.08 | $186.08 |
Where the presets come from
Base: years 1 to 5 grow at RH's revenue growth rate over the last 5 fiscal years (3.8% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions