Published on 26 Apr 2024 on Simply Wall St. via Yahoo Finance
RH's (NYSE:RH) Intrinsic Value Is Potentially 37% Above Its Share Price
Key Insights
RH's estimated fair value is US$333 based on 2 Stage Free Cash Flow to EquityRH is estimated to be 27% undervalued based on current share price of US$243 The US$332 analyst price target for RHis comparable to our estimate of fair value.
Does the April share price for RH (NYSE:RH) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by projecting its future cash flows and then discounting them to today's value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine.