RH, FCFF calculation

US$ in thousands

12 months ended:	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
Net income	528,642)	688,546)	271,815)	220,375)	150,639)	2,180)
Net noncash charges	373,444)	252,316)	335,735)	199,356)	190,761)	215,592)
Change in assets and liabilities	(498,399)	(278,748)	(106,780)	(80,543)	(40,844)	337,330)
Net cash provided by operating activities	403,687)	662,114)	500,770)	339,188)	300,556)	555,102)
Cash paid for interest, net of tax¹	105,719)	33,073)	19,674)	35,445)	25,920)	2,029)
Capitalized interest for capital projects, net of tax²	3,873)	10,230)	4,024)	4,038)	2,612)	238)
Capital expenditures	(173,642)	(185,383)	(111,126)	(93,623)	(136,736)	(112,455)
Finance lease right-of-use assets obtained in exchange for lease obligations, net of lease terminations	(109,015)	(89,617)	(57,873)	(42,122)	(1,534)	(847)
Free cash flow to the firm (FCFF)	230,622)	430,417)	355,469)	242,925)	190,818)	444,067)

Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).

^{1, 2} See details »

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the RH suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	RH FCFF increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

RH, interest paid, net of tax calculation

US$ in thousands

12 months ended:	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
Effective Income Tax Rate (EITR)
EITR¹	21.00%	16.20%	27.80%	18.10%	16.80%	92.80%
Interest Paid, Net of Tax
Cash paid for interest, before tax	133,821)	39,466)	27,249)	43,278)	31,154)	28,180)
Less: Cash paid for interest, tax²	28,102)	6,393)	7,575)	7,833)	5,234)	26,151)
Cash paid for interest, net of tax	105,719)	33,073)	19,674)	35,445)	25,920)	2,029)
Interest Costs Capitalized, Net of Tax
Capitalized interest for capital projects, before tax	4,903)	12,208)	5,574)	4,930)	3,139)	3,304)
Less: Capitalized interest for capital projects, tax³	1,030)	1,978)	1,550)	892)	527)	3,066)
Capitalized interest for capital projects, net of tax	3,873)	10,230)	4,024)	4,038)	2,612)	238)

Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).

¹ See details »

² 2023 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 133,821 × 21.00% = 28,102

³ 2023 Calculation
Capitalized interest for capital projects, tax = Capitalized interest for capital projects × EITR
= 4,903 × 21.00% = 1,030

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RH, current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in thousands)
Enterprise value (EV)	7,094,484)
Free cash flow to the firm (FCFF)	230,622)
Valuation Ratio
EV/FCFF	30.76
Benchmarks
EV/FCFF, Competitors¹
Amazon.com Inc.	50.84
Home Depot Inc.	23.38
Lowe’s Cos. Inc.	18.62
TJX Cos. Inc.	30.75
EV/FCFF, Sector
Consumer Discretionary Distribution & Retail	44.71
EV/FCFF, Industry
Consumer Discretionary	37.59

Based on: 10-K (reporting date: 2023-01-28).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

RH, historical EV/FCFF calculation, comparison to benchmarks

	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
Selected Financial Data (US$ in thousands)
Enterprise value (EV)¹	7,068,341)	7,899,389)	13,601,921)	3,549,916)	3,033,712)	2,906,594)
Free cash flow to the firm (FCFF)²	230,622)	430,417)	355,469)	242,925)	190,818)	444,067)
Valuation Ratio
EV/FCFF³	30.65	18.35	38.26	14.61	15.90	6.55
Benchmarks
EV/FCFF, Competitors⁴
Amazon.com Inc.	45.92	—	—	78.83	—	—
Home Depot Inc.	27.17	25.12	20.22	19.11	—	—
Lowe’s Cos. Inc.	19.56	19.56	14.88	20.95	—	—
TJX Cos. Inc.	31.93	33.03	18.30	19.08	21.16	—
EV/FCFF, Sector
Consumer Discretionary Distribution & Retail	38.32	111.04	130.00	51.35	—	—
EV/FCFF, Industry
Consumer Discretionary	33.08	50.80	60.24	46.23	—	—

Based on: 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03).

¹ See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 7,068,341 ÷ 230,622 = 30.65

⁴ Click competitor name to see calculations.

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Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	RH EV/FCFF ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

RH (NYSE:RH)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical