Latest Ratios: P/E Ratio 19.7x · EV/EBITDA 11.7x · ROE 205.9%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $2.4B | $3.9B | $8.4B | $5.5B | $8.3B | $12.5B | $13.0B | $5.1B | $3.6B | $2.7B | $1.1B |
| Enterprise Value | $6.3B | $7.9B | $12.3B | $9.1B | $10.5B | $13.8B | $14.5B | $6.9B | $5.5B | $3.9B | $1.8B |
| P/E Ratio → | 19.74 | 31.51 | 115.78 | 42.89 | 15.68 | 18.20 | 47.73 | 23.02 | 23.92 | 1342.71 | 207.85 |
| P/S Ratio | 0.68 | 1.14 | 2.63 | 1.81 | 2.31 | 3.33 | 4.56 | 1.92 | 1.44 | 1.13 | 0.52 |
| P/B Ratio | 40.69 | 64.94 | — | — | 10.56 | 10.71 | 29.03 | 271.97 | — | — | 1.20 |
| P/FCF | 9.33 | 15.59 | — | — | 36.02 | 26.29 | 33.31 | 20.66 | 21.25 | 6.21 | — |
| P/OCF | 5.21 | 8.70 | 490.13 | 27.08 | 20.53 | 18.93 | 25.92 | 14.95 | 14.44 | 4.95 | 14.03 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.29 | 3.86 | 2.99 | 2.93 | 3.67 | 5.09 | 2.60 | 2.19 | 1.59 | 0.84 |
| EV / EBITDA | 11.73 | 14.68 | 24.67 | 18.81 | 11.32 | 12.51 | 22.22 | 12.82 | 13.08 | 18.52 | 12.69 |
| EV / EBIT | 16.22 | 20.04 | 38.03 | 22.41 | 17.81 | 15.37 | 32.36 | 19.27 | 23.96 | 41.61 | 32.08 |
| EV / FCF | — | 31.15 | — | — | 45.75 | 28.92 | 37.21 | 28.07 | 32.43 | 8.76 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 44.1% | 44.1% | 44.5% | 45.9% | 50.5% | 49.4% | 46.5% | 41.4% | 39.9% | 34.8% | 31.8% |
| Operating Margin | 11.3% | 11.3% | 11.6% | 12.0% | 20.8% | 24.8% | 17.1% | 14.0% | 10.4% | 5.7% | 4.0% |
| Net Profit Margin | 3.6% | 3.6% | 2.3% | 4.2% | 14.7% | 18.3% | 9.5% | 8.3% | 6.0% | 0.1% | 0.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 205.9% | 205.9% | — | 52.4% | 54.1% | 85.1% | 116.7% | 1181.6% | — | 0.5% | 0.6% |
| ROA | 2.7% | 2.7% | 1.7% | 2.7% | 9.7% | 16.3% | 10.2% | 9.1% | 7.2% | 0.1% | 0.3% |
| ROIC | 7.5% | 7.5% | 7.8% | 8.6% | 20.5% | 31.8% | 19.2% | 15.1% | 13.1% | 7.6% | 4.4% |
| ROCE | 10.3% | 10.3% | 10.6% | 9.4% | 16.8% | 28.9% | 28.4% | 25.7% | 19.7% | 9.3% | 5.0% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 65.50 | 65.50 | — | — | 4.78 | 2.94 | 3.63 | 100.16 | — | — | 0.85 |
| Debt / EBITDA | 7.41 | 7.41 | 7.91 | 7.71 | 4.03 | 3.12 | 2.49 | 3.47 | 4.52 | 5.48 | 5.49 |
| Net Debt / Equity | — | 64.82 | — | — | 2.85 | 1.07 | 3.40 | 97.60 | — | — | 0.75 |
| Net Debt / EBITDA | 7.33 | 7.33 | 7.85 | 7.45 | 2.41 | 1.14 | 2.33 | 3.39 | 4.51 | 5.39 | 4.88 |
| Debt / FCF | — | 15.56 | — | — | 9.73 | 2.63 | 3.90 | 7.41 | 11.17 | 2.55 | — |
| Interest Coverage | 1.74 | 1.74 | 1.38 | 1.70 | 3.90 | 13.41 | 6.34 | 4.04 | 3.35 | 1.48 | 1.18 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.19 | 1.19 | 1.39 | 1.23 | 2.81 | 2.89 | 0.85 | 0.59 | 0.69 | 1.16 | 2.59 |
| Quick Ratio | 0.31 | 0.31 | 0.24 | 0.34 | 1.88 | 2.18 | 0.24 | 0.14 | 0.15 | 0.12 | 0.75 |
| Cash Ratio | 0.04 | 0.04 | 0.03 | 0.14 | 1.70 | 2.05 | 0.11 | 0.05 | 0.01 | 0.03 | 0.55 |
| Asset Turnover | — | 0.71 | 0.70 | 0.73 | 0.68 | 0.68 | 0.98 | 1.08 | 1.03 | 1.41 | 0.97 |
| Inventory Turnover | 2.35 | 2.35 | 1.70 | 2.10 | 2.16 | 2.52 | 2.74 | 3.45 | 2.77 | 2.96 | 1.90 |
| Days Sales Outstanding | — | 12.83 | 13.13 | 11.28 | 9.73 | 7.93 | 9.36 | 6.78 | 13.85 | 4.70 | 8.09 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.1% | 3.2% | 0.9% | 2.3% | 6.4% | 5.5% | 2.1% | 4.3% | 4.2% | 0.1% | 0.5% |
| FCF Yield | 10.7% | 6.4% | — | — | 2.8% | 3.8% | 3.0% | 4.8% | 4.7% | 16.1% | — |
| Buyback Yield | 0.0% | 0.0% | 0.1% | 22.9% | 12.1% | 0.0% | 0.0% | 4.9% | 6.9% | 36.4% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.1% | 22.9% | 12.1% | 0.0% | 0.0% | 4.9% | 6.9% | 36.4% | 0.0% |
| Shares Outstanding | — | $20M | $20M | $22M | $27M | $31M | $27M | $24M | $27M | $29M | $41M |
Includes 30+ ratios · 27 years · Updated daily
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Quick answers to the most common questions about buying RH stock.
Rh's current P/E ratio is 19.7x. The historical average is 46.6x. This places it at the 18th percentile of its historical range.
Rh's current EV/EBITDA is 11.7x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.3x.
Rh's return on equity (ROE) is 205.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 16.4%.
Based on historical data, Rh is trading at a P/E of 19.7x. This is at the 18th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Rh has 44.1% gross margin and 11.3% operating margin. Operating margin between 10-20% is typical for established companies.
Rh's Debt/EBITDA ratio is 7.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Extreme leverage and negative equity history
Metrics are mathematically derived from official filings.
Premium Valuation on Tangible Assets
RH trades at an extreme 43.8x book value and 12.1x EV/EBITDA, multiples that appear to price in a recovery not yet reflected in its meager 2.0% ROIC or 1.2% ROA.
The price-to-book multiple is nearly triple that of peer Williams-Sonoma despite RH's significantly lower returns on capital, suggesting the market is assigning substantial value to intangible brand equity or future growth potential rather than current asset productivity. The forward EV/EBITDA contraction from 12.8x indicates expectations of EBITDA growth, but this would require a sustained margin expansion from its volatile 11.7% operating margin to levels consistently achieved by peers like WSM.
Gross Margin Volatility Dominates Earnings
Gross margin is the primary driver of earnings volatility, swinging from 41.4% to 48.2% in a single quarter, making net income of $60.2 million in 2026Q2 an unreliable indicator of underlying earnings power.
The operating margin rebound to 11.7% in the latest quarter was almost entirely a function of gross margin recovery, as SG&A expenses remained elevated, indicating limited fixed-cost leverage. When adjusting for this volatility, RH's core operating power appears to reside in a mid-to-high single-digit net margin range, as seen in the trailing ten-quarter average of 2.8%, which is materially below the 13.9% net margin of Williams-Sonoma.
Critically Low Capital Efficiency
Despite a return to positive equity, RH's ROIC has remained chronically low, averaging just 1.8% over the past two years, indicating the business destroys value relative to its cost of capital.
The persistent sub-2% ROIC, driven by an asset turnover of just 0.18 and low net margins, reveals a fundamental weakness in converting invested capital into profits, even as gross margins rebound. For a company with a $4.1 billion debt load, this low return on capital magnifies risk, as the spread between ROIC and the implied interest rate on debt appears negative or negligible, suggesting the capital structure is unsustainable without significant operational improvement.
Working Capital Strains Cash Conversion
The cash conversion cycle has improved from 174 days to 105 days over ten quarters, driven primarily by inventory reductions, yet it remains exceptionally long and a major constraint on free cash flow generation.
The sharp decline in days inventory outstanding from 207 to 150 days has been the key efficiency gain, suggesting better demand forecasting or inventory rationalization. However, a CCC of 105 days is still far longer than typical retail operations and is exacerbated by a low days payable outstanding, indicating RH lacks the supplier leverage to extend payment terms, which directly pressures its tight liquidity position.
Extreme Debt Burden Constrains Strategy
With a debt-to-equity ratio of 34.1 and D/EBITDA of 27.7x as of 2026Q2, RH's balance sheet is overwhelmingly leveraged, leaving virtually no margin for error in a downturn.
The interest coverage ratio of 2.09x in the latest quarter, while improved from near-distress levels below 1.0x, remains uncomfortably low for a company of this scale. This leverage profile suggests significant refinancing risk, as the company may struggle to access favorable capital markets without a sustained and substantial improvement in EBITDA, which remains volatile.
The Pitfall of Book Value Multiples
The P/B ratio of 43.8x is the most dangerously misapplied metric to RH, as it obscures the company's history of negative equity and chronic low returns on the tangible capital base it actually employs.
Investors using a P/B comparison to peers like Williams-Sonoma (13.4x) are comparing apples to oranges, as RH's book value has been artificially low or negative for years due to deficits, while its actual economic value resides in brand and intellectual property not reflected on the balance sheet. A more appropriate metric is EV/EBITDA, which captures the debt-funded asset base, but even this must be contextualized against RH's weak ROIC and the significant risk implied by its leverage.