Stock fact sheet · data as of
Rh (RH): fair value, margin of safety and Wheel Score
Consumer Cyclical · Specialty Retail · United States · Blend
Is RH undervalued?
RH has a margin of safety of 33%: the stock closed at 110.99 on 16 Oct 2026 against a GLS average fair value of 166.01. 5 of the 8 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The 8 models disagree widely: GLS Growth gives 17.26 while 10 Cap gives 357.38. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files RH under Blend.
Nine valuation models for RH
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 123.22 | +11% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 29.05 | -74% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 337.25 | +204% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 147.40 | +33% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 17.26 | -84% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 357.38 | +222% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 251.04 | +126% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 65.51 | -41% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -193.76 | -275% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 166.43 | +50% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - RH passes 6 of the nine Piotroski tests, which passes the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 4.4 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are thin or negative - ROIC 3.1%, ROE 205.9%, ROA 2.6% - with debt at 65.50 times equity and a free-cash-flow yield of 11.8%. Debt of 65.50 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.
Rh pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from RH 94%, Waterworks 6% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 1/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 3.1% |
|---|---|---|---|
| GLS Moat | 4.4 / 10 | ROE | 205.9% |
| Debt / equity | 65.50 | ROA | 2.6% |
| Free-cash-flow yield | 11.8% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 1 / 10 |
Wheel Score 78: Good
RH scores 78 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 25/25), Piotroski health (13/20), the GLS moat (7/15), the option premium on offer (19/20) and how easily the stock trades (14/20). Moat (7/15) is the part holding the score back.
Implied volatility is 63% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (19 of 20) because volatility this high usually comes with a reason. The option chain is deep: 51,961 contracts of open interest across all expiries, which means tight fills at most strikes.
Volume runs at 1.3M shares a day on a market cap of $2.1B, with a beta of 1.91 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 14 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 33% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 7 / 15 | moat 4.4/10 | |
| Premium | 19 / 20 | implied volatility 63% | |
| Stability | 14 / 20 | 1.3M shares/day, $2.1B cap, beta 1.91 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 10 Dec 2026, 55 days away - outside the window of a 30-45-day put sold today.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Specialty Retail
The 12 companies below are the closest to Rh by market cap within the Specialty Retail industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| BOBS Bob's Discount Furniture, Inc. | 14.78 | 25.69 | +42% | 45Weak | $1.9B |
| AAP Advance Auto Parts, Inc. | 43.92 | 22.19 | -98% | 52Fair | $2.7B |
| RVLV Revolve Group, Inc. | 21.60 | 22.17 | +3% | 63Fair | $1.5B |
| SBH Sally Beauty Holdings, Inc. | 16.11 | 44.11 | +63% | 86Prime | $1.5B |
| SVV Savers Value Village, Inc. | 9.35 | 6.22 | -50% | 53Fair | $1.4B |
| ARHS Arhaus, Inc. | 10.13 | 7.59 | -34% | 50Fair | $1.4B |
| WRBY Warby Parker Inc. | 24.92 | 3.62 | -588% | 48Weak | $3.1B |
| EYE National Vision Holdings, Inc. | 17.66 | 11.74 | -50% | 61Fair | $1.4B |
| MNSO MINISO Group Holding Limited | 10.58 | 47.12 | +78% | 81Prime | $3.2B |
| LQDT Liquidity Services, Inc. | 44.09 | 29.25 | -51% | 50Fair | $1.4B |
| RERE ATRenew Inc. | 3.98 | 20.92 | +81% | 39No options | $1.3B |
| ASO Academy Sports and Outdoors, Inc. | 58.47 | 91.83 | +36% | 87Prime | $3.6B |
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Start free See the Sunday ScanQuestions about RH
Is RH undervalued right now?
By the GLS models, yes: at 110.99 the stock is 33% below the average fair value of 166.01 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of RH and what does it mean?
RH scores 78 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for RH?
166.01 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Rh report earnings next?
The next earnings report is due on 10 Dec 2026 (after the close), 55 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does RH have listed options, and how liquid are they?
Yes. The nightly snapshot found 1,000 listed contracts with 51,961 open interest across all expiries and implied volatility of 63% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.