Skip to content

RH (RH) — WACC Analysis

WACC Breakdown

RH (RH) has a weighted average cost of capital (WACC) of 5.5%. The cost of equity is 9.2%, derived from a beta of 1.00 and a risk-free rate of 5.0%. The after-tax cost of debt is 1.6%. The capital structure is 51.6% equity and 48.4% debt.

Interpretation

A WACC of 5.5% suggests that the market views RH as relatively low-risk, with a lower cost of financing.

Investors can compare RH's WACC of 5.5% against industry peers to gauge its relative financing costs. A beta of 1.00 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

RH WACC: 5.50% for RH

Current inputs imply a 9.19% cost of equity and a 2.00% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

RH Common Stock (RH) WACC Results
Weighted Average Cost of Capital
5.50%
Cost of Equity
9.19%
Risk-Free Rate4.96%
Beta1.00
Market Risk Premium4.23%
Cost of Debt
1.58%
Pre-Tax Cost of Debt2.00%
Tax Rate21.00%
Tax Shield0.42%
Capital Structure
Equity: 51.56%($2540.26M)
Debt: 48.44%($2386.25M)
Equity Component
4.74%
51.56% × 9.19%
Debt Component
0.77%
48.44% × 1.58%

RH (RH) WACC in context

RH (RH) currently screens with an estimated WACC of 5.50%. That blends a 9.19% cost of equity, a 2.00% pre-tax cost of debt, and a 51.56% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What RH WACC implies

A 5.50% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates RH

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.00 and equity accounts for 51.56% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.