Restoration Hardware engages in the retail of home furnishings. Its product categories include furniture, lighting, textiles, bathware, décor, outdoor and garden, tableware, and childrens furnishings. The company was founded in 1979 and is based in Corte Madera, California.
RH Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Rh with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Rh ranked in the 27th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of Rh, consider:
86% of the company's capital comes from equity, which is greater than 69.48% of stocks in our cash flow based forecasting set.
Relative to other stocks in its sector (Consumer Cyclical), Rh has a reliance on debt greater than just 17.07% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
TMX, TPCO, LEVI, BXG, and PLOW can be thought of as valuation peers to RH, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
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