Stock Analysis on Net

RH (NYSE:RH)

This company has been moved to the archive! The financial data has not been updated since May 26, 2023.

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

RH, FCFF calculation

US$ in thousands

Microsoft Excel
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).

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.

Interest Paid, Net of Tax

RH, interest paid, net of tax calculation

US$ in thousands

Microsoft Excel
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


Enterprise Value to FCFF Ratio, Current

RH, current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
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. 56.07
Home Depot Inc. 22.48
Lowe’s Cos. Inc. 25.13
TJX Cos. Inc. 29.04
EV/FCFF, Sector
Consumer Discretionary Distribution & Retail 47.55
EV/FCFF, Industry
Consumer Discretionary 38.95

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.


Enterprise Value to FCFF Ratio, Historical

RH, historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
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 74.39
Home Depot Inc. 27.17 25.12 20.22 19.11 21.30
Lowe’s Cos. Inc. 19.56 19.56 14.88 20.95 18.88
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 42.44
EV/FCFF, Industry
Consumer Discretionary 32.71 50.20 59.78 45.72 30.57

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.

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.