Latest Ratios: P/E Ratio 25.9x · EV/EBITDA 13.1x · 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 | $3.1B | $3.9B | $8.4B | $5.5B | $8.3B | $12.5B | $13.0B | $5.1B | $3.6B | $2.7B | $1.1B |
| Enterprise Value | $7.0B | $7.9B | $12.3B | $9.1B | $10.5B | $13.8B | $14.5B | $6.9B | $5.5B | $3.9B | $1.8B |
| P/E Ratio → | 25.94 | 31.51 | 115.78 | 42.89 | 15.68 | 18.20 | 47.73 | 23.02 | 23.92 | 1342.71 | 207.85 |
| P/S Ratio | 0.90 | 1.14 | 2.63 | 1.81 | 2.31 | 3.33 | 4.56 | 1.92 | 1.44 | 1.13 | 0.52 |
| P/B Ratio | 53.46 | 64.94 | — | — | 10.56 | 10.71 | 29.03 | 271.97 | — | — | 1.20 |
| P/FCF | 12.26 | 15.59 | — | — | 36.02 | 26.29 | 33.31 | 20.66 | 21.25 | 6.21 | — |
| P/OCF | 6.84 | 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 | 13.11 | 14.68 | 24.67 | 18.81 | 11.32 | 12.51 | 22.22 | 12.82 | 13.08 | 18.52 | 12.69 |
| EV / EBIT | 18.13 | 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 | 3.9% | 3.2% | 0.9% | 2.3% | 6.4% | 5.5% | 2.1% | 4.3% | 4.2% | 0.1% | 0.5% |
| FCF Yield | 8.2% | 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 |
High fixed cost leverage
According to recent market data, RH trades at a forward P/E of 32.34, which appears to price in a significant recovery that may be disconnected from the current 25.20 TTM P/E and the broader cooling trend in the luxury home furnishings sector.
The valuation premium suggests investors are betting on a successful pivot to a luxury platform model rather than a traditional retail recovery. However, given the contraction in net margins, this multiple warrants caution as it implies a growth trajectory that the current cyclical environment may not support.
Based on reported financial statements, RH's ROIC has remained suppressed, hovering near 0.7% to 2.6% over the last ten quarters, indicating that the company's massive investment in physical galleries is currently failing to generate returns that exceed the cost of capital.
The persistent low ROIC suggests that the capital-intensive gallery strategy is a drag on shareholder value during periods of low revenue growth. Investors should monitor whether future gallery openings can achieve higher throughput to justify the significant asset base currently sitting on the balance sheet.
As reported in recent filings, RH's cash conversion cycle has fluctuated significantly, reaching 113 days in 2026Q1, which reflects the inherent difficulty of managing inventory for high-end, oversized furniture in a slowing demand environment.
The extended DIO, which peaked at 207 days in 2025Q1, suggests that inventory is moving slower than management likely anticipated. This inefficiency ties up critical liquidity and increases the risk of future markdowns, which could further erode the company's already strained gross margins.
According to the latest balance sheet data, RH's debt-to-equity ratio of 67.57 in 2026Q1 highlights a highly leveraged capital structure that leaves little room for error in a high-interest-rate environment where interest coverage has dropped to 0.65.
The sharp decline in interest coverage indicates that debt service is becoming increasingly burdensome, potentially limiting the company's ability to fund further gallery expansions or share repurchases. This leverage profile makes the firm particularly vulnerable to any further deterioration in operating cash flow.
The P/S ratio is frequently misapplied to RH, as it obscures the company's high fixed-cost structure and the significant impact of interest expenses on the bottom line, which are not captured by top-line revenue multiples.
Investors should prioritize EV/EBITDA or FCF-based metrics over P/S, as the latter ignores the massive debt load and the capital intensity of the gallery model. Relying on P/S risks overestimating the company's value by ignoring the structural costs required to maintain its luxury positioning.
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 25.9x. The historical average is 46.6x. This places it at the 36th percentile of its historical range.
Rh's current EV/EBITDA is 13.1x. 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 25.9x. This is at the 36th 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.