Name: RH (NYSE:RH) | Enterprise Value (EV)
Creator: Stock Analysis on Net

Enterprise Value (EV)

Current EV
Historical EV

Current Enterprise Value (EV)

RH, current enterprise value calculation

Current share price (P)	$246.82
No. shares of common stock outstanding	22,052,211
US$ in thousands
Common equity (market value)¹	5,442,927)
Add: Preferred stock, $0.0001 par value per share, no shares issued or outstanding (per books)	—)
Total equity	5,442,927)
Add: Convertible senior notes due 2024, net (per books)	—)
Add: Convertible senior notes due 2023, net (per books)	1,696)
Add: Convertible senior notes due 2020, net (per books)	—)
Add: Convertible senior notes due 2019, net (per books)	—)
Add: Current portion of term loans (per books)	25,000)
Add: Current finance lease liabilities (per books)	17,007)
Add: Current portion of equipment promissory notes (per books)	1,160)
Add: Asset based credit facility (per books)	—)
Add: Term loan B, net (per books)	1,936,529)
Add: Term loan B-2, net (per books)	469,245)
Add: Term loan, net (per books)	—)
Add: Real estate loans (per books)	17,909)
Add: Convertible senior notes due 2024, net (per books)	41,724)
Add: Convertible senior notes due 2023, net (per books)	—)
Add: Convertible senior notes due 2020, net (per books)	—)
Add: Convertible senior notes due 2019, net (per books)	—)
Add: Non-current finance lease liabilities (per books)	653,050)
Add: Non-current portion of equipment promissory notes, net (per books)	—)
Total equity and debt	8,606,247)
Less: Cash and cash equivalents	1,508,101)
Less: Restricted cash	3,662)
Enterprise value (EV)	7,094,484)

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

¹ Common equity (market value) = Share price × No. shares of common stock outstanding
= 246.82 × 22,052,211

Historical Enterprise Value (EV)

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RH, EV calculation

	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
Share price^1, 2	$245.71	$334.28	$600.00	$118.00	$102.95	$95.28
No. shares of common stock outstanding¹	22,045,437	21,708,771	20,996,817	19,238,681	20,478,213	21,518,618
US$ in thousands
Common equity (market value)³	5,416,784)	7,256,808)	12,598,090)	2,270,164)	2,108,232)	2,050,294)
Add: Preferred stock, $0.0001 par value per share, no shares issued or outstanding (book value)	—)	—)	—)	—)	—)	—)
Total equity	5,416,784)	7,256,808)	12,598,090)	2,270,164)	2,108,232)	2,050,294)
Add: Convertible senior notes due 2024, net (book value)	—)	3,600)	—)	—)	—)	—)
Add: Convertible senior notes due 2023, net (book value)	1,696)	9,389)	2,354)	—)	—)	—)
Add: Convertible senior notes due 2020, net (book value)	—)	—)	—)	290,532)	—)	—)
Add: Convertible senior notes due 2019, net (book value)	—)	—)	—)	—)	343,789)	—)
Add: Current portion of term loans (book value)	25,000)	20,000)	—)	—)	—)	—)
Add: Current finance lease liabilities (book value)	17,007)	15,511)	14,671)	9,188)	1,074)	471)
Add: Current portion of equipment promissory notes (book value)	1,160)	13,625)	22,747)	22,009)	892)	6,033)
Add: Asset based credit facility (book value)	—)	—)	—)	—)	57,500)	199,970)
Add: Term loan B, net (book value)	1,936,529)	1,953,203)	—)	—)	—)	—)
Add: Term loan B-2, net (book value)	469,245)	—)	—)	—)	—)	—)
Add: Term loan, net (book value)	—)	—)	—)	—)	—)	79,499)
Add: Real estate loans (book value)	17,909)	—)	—)	—)	—)	—)
Add: Convertible senior notes due 2024, net (book value)	41,724)	184,461)	281,454)	264,982)	—)	—)
Add: Convertible senior notes due 2023, net (book value)	—)	59,002)	282,956)	266,658)	249,151)	—)
Add: Convertible senior notes due 2020, net (book value)	—)	—)	—)	—)	271,157)	252,994)
Add: Convertible senior notes due 2019, net (book value)	—)	—)	—)	—)	—)	327,731)
Add: Non-current finance lease liabilities (book value)	653,050)	560,550)	485,481)	442,988)	7,720)	7,509)
Add: Non-current portion of equipment promissory notes, net (book value)	—)	1,129)	14,614)	31,053)	—)	—)
Total equity and debt	8,580,104)	10,077,278)	13,702,367)	3,597,574)	3,039,515)	2,924,501)
Less: Cash and cash equivalents	1,508,101)	2,177,889)	100,446)	47,658)	5,803)	17,907)
Less: Restricted cash	3,662)	—)	—)	—)	—)	—)
Enterprise value (EV)	7,068,341)	7,899,389)	13,601,921)	3,549,916)	3,033,712)	2,906,594)

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 Data adjusted for splits and stock dividends.

² Closing price as at the filing date of RH Annual Report.

³ 2023 Calculation
Common equity (market value) = Share price × No. shares of common stock outstanding
= 245.71 × 22,045,437

An analysis of the financial trajectory from February 2018 to January 2023 reveals a period of moderate growth followed by extreme volatility in valuation. The most significant movement occurred between 2020 and 2021, where a substantial surge in equity market value drove a corresponding peak in enterprise value, followed by a steady contraction over the subsequent two fiscal years.

Market Equity Fluctuations: Common equity market value remained relatively stable between 2018 and 2020, increasing from approximately 2.05 billion to 2.27 billion. A sharp escalation occurred by January 30, 2021, reaching a peak of 12.60 billion. This valuation subsequently declined to 7.26 billion in 2022 and further to 5.42 billion by January 28, 2023, representing a significant correction from the 2021 high.
Enterprise Value (EV) Trends: The Enterprise Value closely mirrors the trajectory of market equity. EV grew incrementally from 2.91 billion in 2018 to 3.55 billion in 2020. The value spiked to 13.60 billion in 2021, marking the period's maximum valuation. A downward trend followed, with EV decreasing to 7.90 billion in 2022 and 7.07 billion in 2023.
Capital Structure Observations: The parity between Total Equity and Common Equity market value suggests that market capitalization is the dominant component of the equity structure. While Total Equity and Debt peaked at 13.70 billion in 2021, the Enterprise Value remained slightly lower, indicating a consistent relationship between the total capital employed and the overall enterprise valuation across the observed period.

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