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RH (BSP:R2HH34) Cyclically Adjusted PS Ratio : 2.33 (As of Apr. 28, 2024)


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What is RH Cyclically Adjusted PS Ratio?

As of today (2024-04-28), RH's current share price is R$22.64. RH's Cyclically Adjusted Revenue per Share for the quarter that ended in Jan. 2024 was R$9.73. RH's Cyclically Adjusted PS Ratio for today is 2.33.

The historical rank and industry rank for RH's Cyclically Adjusted PS Ratio or its related term are showing as below:

BSP:R2HH34' s Cyclically Adjusted PS Ratio Range Over the Past 10 Years
Min: 0.73   Med: 2.87   Max: 9.93
Current: 2.27

During the past years, RH's highest Cyclically Adjusted PS Ratio was 9.93. The lowest was 0.73. And the median was 2.87.

BSP:R2HH34's Cyclically Adjusted PS Ratio is ranked worse than
87.23% of 752 companies
in the Retail - Cyclical industry
Industry Median: 0.48 vs BSP:R2HH34: 2.27

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio. The Cyclically Adjusted Revenue per Share is the average of the inflation adjusted revenue per share of a company over the past 10 years.

RH's adjusted revenue per share data for the three months ended in Jan. 2024 was R$3.066. Add all the adjusted revenue per share for the past 10 years together and divide 10 will get our Cyclically Adjusted Revenue per Share, which is R$9.73 for the trailing ten years ended in Jan. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


RH Cyclically Adjusted PS Ratio Historical Data

The historical data trend for RH's Cyclically Adjusted PS Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

RH Cyclically Adjusted PS Ratio Chart

RH Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Cyclically Adjusted PS Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.33 6.86 4.85 3.19 2.31

RH Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Cyclically Adjusted PS Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.19 2.52 3.72 2.02 2.31

Competitive Comparison of RH's Cyclically Adjusted PS Ratio

For the Specialty Retail subindustry, RH's Cyclically Adjusted PS Ratio, along with its competitors' market caps and Cyclically Adjusted PS Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


RH's Cyclically Adjusted PS Ratio Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, RH's Cyclically Adjusted PS Ratio distribution charts can be found below:

* The bar in red indicates where RH's Cyclically Adjusted PS Ratio falls into.



RH Cyclically Adjusted PS Ratio Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted PS Ratio takes the Revenue per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/S calculation. Because it considers this 10-year average, it's often referred to as the CAPS Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PS Ratio.

RH's Cyclically Adjusted PS Ratio for today is calculated as

Cyclically Adjusted PS Ratio=Share Price/ Cyclically Adjusted Revenue per Share
=22.64/9.73
=2.33

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

RH's Cyclically Adjusted Revenue per Share for the quarter that ended in Jan. 2024 is calculated as:

For example, RH's adjusted Revenue per Share data for the three months ended in Jan. 2024 was:

Adj_RevenuePerShare=Revenue per Share/CPI of Jan. 2024 (Change)*Current CPI (Jan. 2024)
=3.066/129.4194*129.4194
=3.066

Current CPI (Jan. 2024) = 129.4194.

RH Quarterly Data

Revenue per Share CPI Adj_RevenuePerShare
201404 0.335 100.023 0.433
201407 0.390 100.520 0.502
201410 0.479 100.176 0.619
201501 0.601 98.604 0.789
201504 0.511 99.824 0.663
201507 0.647 100.691 0.832
201510 0.812 100.346 1.047
201601 1.036 99.957 1.341
201604 0.668 100.947 0.856
201607 0.729 101.524 0.929
201610 0.714 101.988 0.906
201701 0.749 102.456 0.946
201704 0.783 103.167 0.982
201707 1.158 103.278 1.451
201710 1.342 104.070 1.669
201801 1.671 104.578 2.068
201804 1.258 105.708 1.540
201807 1.488 106.324 1.811
201810 1.443 106.695 1.750
201901 1.628 106.200 1.984
201904 1.562 107.818 1.875
201907 1.997 108.250 2.388
201910 1.911 108.577 2.278
202001 1.789 108.841 2.127
202004 2.228 108.173 2.666
202007 2.351 109.318 2.783
202010 2.803 109.861 3.302
202101 2.415 110.364 2.832
202104 2.565 112.673 2.946
202107 2.665 115.183 2.994
202110 2.977 116.696 3.302
202201 2.781 118.619 3.034
202204 2.733 121.978 2.900
202207 3.300 125.002 3.417
202210 2.921 125.734 3.007
202301 2.636 126.223 2.703
202304 2.609 127.992 2.638
202307 2.824 128.974 2.834
202310 3.453 129.810 3.443
202401 3.066 129.419 3.066

Add all the adjusted revenue per share together and divide 10 will get our Cyclically Adjusted Revenue per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


RH  (BSP:R2HH34) Cyclically Adjusted PS Ratio Explanation

Compared with the regular PS Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PS Ratio smoothed out the fluctuations of revenue during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted PS Ratio should give similar results to regular PS Ratio.


RH Cyclically Adjusted PS Ratio Related Terms

Thank you for viewing the detailed overview of RH's Cyclically Adjusted PS Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


RH (BSP:R2HH34) Business Description

Industry
Traded in Other Exchanges
Address
15 Koch Road, Suite K, Corte Madera, CA, USA, 94925
RH is a luxury retailer operating in the $143 billion domestic furniture and home furnishing industry. The firm offers merchandise across many categories including furniture, lighting, textiles, bath, decor, children, and is growing the presence of its hospitality business (with 15 restaurant locations). RH innovates, curates, and integrates products, categories, services, and businesses across channels and brand extensions (RH Teen, RH Modern, and Waterworks, for example). RH is fully integrated across store, Web, and catalog channels, and is positioned to broaden its total addressable market over the next decade with its World of RH digital platform (highlighting offerings outside of home furnishings), along with future offerings in color, bespoke furniture, architeture, media, and more.

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