Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)
P to FCFE Ratio, Current
P to FCFE Ratio, Historical

Free Cash Flow to Equity (FCFE)

RH, FCFE 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)
Capital expenditures	(173,642)	(185,383)	(111,126)	(93,623)	(136,736)	(112,455)
Borrowings under asset based credit facility	—)	—)	359,401)	322,500)	866,500)	600,000)
Repayments under asset based credit facility	—)	—)	(359,401)	(380,000)	(1,008,970)	(400,030)
Borrowings under term loans	500,000)	2,000,000)	—)	320,000)	—)	180,000)
Repayments under term loans	(21,250)	(5,000)	—)	(324,000)	(80,000)	(100,000)
Borrowings under real estate loans	16,000)	—)	—)	—)	—)	—)
Repayments under real estate loans	(10)	—)	—)	—)	—)	—)
Borrowings under promissory and equipment security notes	—)	—)	12,857)	122,000)	—)	34,000)
Repayments under promissory and equipment security notes	(13,863)	(22,949)	(34,456)	(16,520)	(31,974)	(2,319)
Proceeds from issuance of convertible senior notes	—)	—)	—)	350,000)	335,000)	—)
Purchase of convertible note hedges	—)	—)	—)	(91,350)	(91,857)	—)
Debt issuance costs related to convertible senior notes	—)	—)	—)	(4,818)	(6,349)	—)
Repayments of convertible senior notes	(13,064)	(335,729)	(215,846)	(278,560)	—)	—)
Repayment under convertible senior notes repurchase obligation	(395,372)	—)	—)	—)	—)	—)
Debt extinguishment costs	(8,059)	—)	—)	—)	—)	—)
Debt issuance costs	(28,069)	(26,411)	—)	(4,636)	—)	(8,298)
Principal payments under finance lease agreements, net of tenant allowances	(10,146)	(14,158)	(12,498)	(9,682)	—)	(377)
Proceeds from termination of convertible senior note hedges	231,796)	—)	—)	—)	—)	—)
Free cash flow to equity (FCFE)	488,008)	2,072,484)	139,701)	250,499)	146,170)	745,623)

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).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to RH equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	RH FCFE increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Price to FCFE Ratio, Current

RH, current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	22,052,211
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)	488,008)
FCFE per share	22.13
Current share price (P)	246.82
Valuation Ratio
P/FCFE	11.15
Benchmarks
P/FCFE, Competitors¹
Amazon.com Inc.	90.64
GameStop Corp.	—
Home Depot Inc.	18.27
Lowe’s Cos. Inc.	16.41
TJX Cos. Inc.	29.63
P/FCFE, Sector
Consumer Discretionary Distribution & Retail	45.87
P/FCFE, Industry
Consumer Discretionary	31.88

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

¹ Click competitor name to see calculations.

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

Price to FCFE Ratio, Historical

RH, historical P/FCFE calculation, comparison to benchmarks

	Jan 28, 2023	Jan 29, 2022	Jan 30, 2021	Feb 1, 2020	Feb 2, 2019	Feb 3, 2018
No. shares of common stock outstanding¹	22,045,437	21,708,771	20,996,817	19,238,681	20,478,213	21,518,618
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)²	488,008)	2,072,484)	139,701)	250,499)	146,170)	745,623)
FCFE per share³	22.14	95.47	6.65	13.02	7.14	34.65
Share price^1, 4	245.71	334.28	600.00	118.00	102.95	95.28
Valuation Ratio
P/FCFE⁵	11.10	3.50	90.18	9.06	14.42	2.75
Benchmarks
P/FCFE, Competitors⁶
Amazon.com Inc.	84.16	240.95	—	55.66	63.35	—
GameStop Corp.	145.73	—	125.86	—	4.72	—
Home Depot Inc.	19.60	19.87	15.41	14.99	16.61	—
Lowe’s Cos. Inc.	7.08	13.55	12.28	8.69	20.45	—
TJX Cos. Inc.	33.59	—	10.55	19.71	21.79	—
P/FCFE, Sector
Consumer Discretionary Distribution & Retail	41.67	53.54	59.29	38.77	37.99	—
P/FCFE, Industry
Consumer Discretionary	30.89	36.64	83.01	32.30	28.92	—

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 488,008,000 ÷ 22,045,437 = 22.14

⁴ Closing price as at the filing date of RH Annual Report.

⁵ 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 245.71 ÷ 22.14 = 11.10

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	RH P/FCFE ratio decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

RH (NYSE:RH)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical