Latest Ratios: P/E Ratio 17.0x · EV/EBITDA 8.3x · ROE 17.7%. (2019–2025 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 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $1.2B | $1.6B | $1.3B | $1.7B | $1.4B | $1.8B | — | — |
| Enterprise Value | $1.5B | $1.9B | $1.6B | $1.9B | $1.6B | $1.7B | — | — |
| P/E Ratio → | 16.98 | 23.35 | 19.18 | 13.31 | 9.95 | 49.07 | — | — |
| P/S Ratio | 0.84 | 1.15 | 1.04 | 1.29 | 1.11 | 2.28 | — | — |
| P/B Ratio | 2.76 | 3.79 | 3.85 | 4.88 | 6.49 | 26.01 | — | — |
| P/FCF | 19.56 | 26.88 | 33.28 | 22.06 | 62.45 | 18.45 | — | — |
| P/OCF | 8.43 | 11.58 | 8.99 | 9.64 | 17.57 | 12.98 | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.39 | 1.28 | 1.47 | 1.30 | 2.19 | — | — |
| EV / EBITDA | 8.30 | 10.72 | 9.96 | 8.31 | 6.72 | 30.40 | — | — |
| EV / EBIT | 16.66 | 20.79 | 18.93 | 11.49 | 8.68 | 51.49 | — | — |
| EV / FCF | — | 32.43 | 40.88 | 25.08 | 73.56 | 17.70 | — | — |
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 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 38.9% | 38.9% | 39.4% | 42.0% | 42.7% | 41.4% | 39.3% | 35.6% |
| Operating Margin | 6.4% | 6.4% | 6.8% | 12.8% | 15.0% | 4.2% | 6.1% | 6.0% |
| Net Profit Margin | 4.9% | 4.9% | 5.4% | 9.7% | 11.1% | 2.6% | 1.2% | 1.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| ROE | 17.7% | 17.7% | 20.0% | 45.5% | 97.8% | 119.6% | — | 248.3% |
| ROA | 5.2% | 5.2% | 5.9% | 12.3% | 17.9% | 4.6% | 2.1% | 2.8% |
| ROIC | 9.6% | 9.6% | 10.8% | 24.2% | 61.8% | — | 148.0% | 29.6% |
| ROCE | 10.2% | 10.2% | 11.1% | 24.8% | 49.3% | 22.6% | 24.6% | 21.0% |
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 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.39 | 1.39 | 1.45 | 1.32 | 1.85 | 0.72 | — | 27.90 |
| Debt / EBITDA | 3.25 | 3.25 | 3.06 | 1.98 | 1.62 | 0.88 | 1.00 | 1.85 |
| Net Debt / Equity | — | 0.78 | 0.88 | 0.67 | 1.15 | -1.05 | — | 23.81 |
| Net Debt / EBITDA | 1.83 | 1.83 | 1.85 | 1.00 | 1.01 | -1.28 | -0.20 | 1.58 |
| Debt / FCF | — | 5.55 | 7.60 | 3.02 | 11.11 | -0.74 | -0.07 | 7.11 |
| Interest Coverage | — | — | 15.78 | 30.15 | 54.52 | 6.23 | 2.37 | 2.21 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.37 | 1.37 | 1.32 | 1.49 | 1.26 | 0.92 | 0.90 | 1.10 |
| Quick Ratio | 0.62 | 0.62 | 0.58 | 0.74 | 0.49 | 0.40 | 0.40 | 0.24 |
| Cash Ratio | 0.56 | 0.56 | 0.49 | 0.65 | 0.39 | 0.31 | 0.27 | 0.10 |
| Asset Turnover | — | 0.99 | 1.05 | 1.17 | 1.31 | 1.36 | 1.57 | 1.84 |
| Inventory Turnover | 2.49 | 2.49 | 2.59 | 2.94 | 2.46 | 2.24 | 2.85 | 2.89 |
| Days Sales Outstanding | — | 0.18 | 0.36 | 0.68 | 1.80 | 0.10 | 0.43 | 0.32 |
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 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.0% | 0.0% | 5.3% | — | — | 3.4% | — | — |
| Payout Ratio | 0.5% | 0.5% | 102.5% | — | — | 293.2% | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.9% | 4.3% | 5.2% | 7.5% | 10.1% | 2.0% | — | — |
| FCF Yield | 5.1% | 3.7% | 3.0% | 4.5% | 1.6% | 5.4% | — | — |
| Buyback Yield | 0.2% | 0.1% | 0.1% | 0.1% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.2% | 0.2% | 5.4% | 0.1% | 0.0% | 3.4% | — | — |
| Shares Outstanding | — | $141M | $141M | $140M | $140M | $137M | $137M | $28M |
High fixed cost sensitivity
According to current market data, Arhaus trades at a TTM P/E of 17.52, which, when compared to the broader home furnishings sector, suggests that investors are pricing in significant caution regarding the company's ability to maintain its growth trajectory amidst a cooling discretionary spending environment.
The current PEG ratio of 0.59 implies that the market may be undervaluing the company's growth potential relative to its earnings, yet this must be balanced against the volatility in recent quarterly results. Investors should monitor whether the current valuation discount to peers like RH is a structural mispricing or a rational response to the company's high fixed-cost exposure.
Based on the company's reported figures, ROIC has compressed to 0.2% in 2026Q1 from a peak of 5.6% in 2023Q4, indicating that the firm's ability to generate returns on its heavy investment in showroom infrastructure is currently under significant pressure from rising operational costs and slowing sales.
The sharp decline in ROIC suggests that the capital-intensive nature of the artisan-led showroom model is struggling to achieve scale in the current macro climate. This trend warrants further investigation into whether the shift toward smaller-format Design Studios can effectively improve capital turnover or if the current asset base remains a drag on long-term compounding.
As reported in financial statements, the cash conversion cycle has expanded to 127 days in 2026Q1, up from 92 days in 2023Q4, signaling that Arhaus is becoming less efficient at managing its inventory and converting its operational investments into liquid cash flow during this period of decelerating demand.
The increase in days inventory outstanding to 159 days suggests that the company is holding significantly more stock relative to its current sales velocity, which poses a risk of future margin-diluting markdowns. This deterioration in working capital efficiency appears to be a primary driver of the company's recent cash flow volatility.
According to recent SEC filings, the Debt-to-EBITDA ratio has surged to 22.66 in 2026Q1, a dramatic increase from 7.83 in 2023Q4, which indicates that the company's ability to service its debt obligations is becoming increasingly constrained as operating profitability faces cyclical headwinds and high fixed-cost burdens.
While the company has historically maintained a conservative balance sheet, the current trajectory of rising leverage relative to earnings suggests a narrowing margin of safety. Investors should monitor the interest coverage ratio closely, as any further compression in operating margins could limit the company's financial flexibility in a high-rate environment.
The most commonly misapplied metric for Arhaus is the correlation to housing starts, which obscures the company's unique reliance on the 'wealth effect' and project-based luxury spending rather than the broader, rate-sensitive housing market that dictates the performance of mass-market home improvement retailers.
Analysts often use housing starts as a proxy for Arhaus's demand, but this ignores the company's artisan-led, high-ticket model which is more sensitive to affluent consumer sentiment and equity market performance. A more appropriate metric would be the tracking of customer deposits as a leading indicator of future revenue recognition, rather than relying on macro-housing data.
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Quick answers to the most common questions about buying ARHS stock.
Arhaus, Inc.'s current P/E ratio is 17.0x. The historical average is 23.0x. This places it at the 40th percentile of its historical range.
Arhaus, Inc.'s current EV/EBITDA is 8.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.2x.
Arhaus, Inc.'s return on equity (ROE) is 17.7%. The historical average is 91.5%.
Based on historical data, Arhaus, Inc. is trading at a P/E of 17.0x. This is at the 40th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Arhaus, Inc.'s current dividend yield is 0.03% with a payout ratio of 0.5%.
Arhaus, Inc. has 38.9% gross margin and 6.4% operating margin.
Arhaus, Inc.'s Debt/EBITDA ratio is 3.3x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.