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RH (FRA:RS1) E10 : €8.82 (As of Jan. 2025)


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What is RH E10?

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

RH's adjusted earnings per share data for the three months ended in Jan. 2025 was €0.667. Add all the adjusted EPS for the past 10 years together and divide 10 will get our e10, which is €8.82 for the trailing ten years ended in Jan. 2025.

During the past 12 months, RH's average E10 Growth Rate was 3.80% per year. During the past 3 years, the average E10 Growth Rate was 17.90% per year. During the past 5 years, the average E10 Growth Rate was 36.30% per year. During the past 10 years, the average E10 Growth Rate was 71.60% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the E10 growth rate using E10 data.

During the past 13 years, the highest 3-Year average E10 Growth Rate of RH was 116.40% per year. The lowest was 17.90% per year. And the median was 66.50% per year.

As of today (2025-04-28), RH's current stock price is €162.58. RH's E10 for the quarter that ended in Jan. 2025 was €8.82. RH's Shiller PE Ratio of today is 18.43.

During the past 13 years, the highest Shiller PE Ratio of RH was 1030.90. The lowest was 16.31. And the median was 125.75.


RH E10 Historical Data

The historical data trend for RH's E10 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 E10 Chart

RH Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25
E10
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.49 4.81 7.12 8.08 8.82

RH Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
E10 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 8.08 8.25 7.85 8.24 8.82

Competitive Comparison of RH's E10

For the Specialty Retail subindustry, RH's Shiller PE Ratio, along with its competitors' market caps and Shiller PE 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 Shiller PE Ratio Distribution in the Retail - Cyclical Industry

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

* The bar in red indicates where RH's Shiller PE Ratio falls into.


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RH E10 Calculation

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. When we calculate the today's Shiller P/E ratio of a stock, we use today's price divided by E10.

What is E10? How do we calculate E10?

E10 is the average of the inflation adjusted earnings of a company over the past 10 years. Let's use an example to explain.

If we want to calculate the E10 of Wal-Mart (WMT) for Dec. 31, 2010, we need to have the inflation data and the earnings from 2001 through 2010.

We adjusted the earnings of 2001 earnings data with the total inflation from 2001 through 2010 to the equivalent earnings in 2010. If the total inflation from 2001 to 2010 is 40%, and Wal-Mart earned $1 a share in 2001, then the 2001's equivalent earnings in 2010 is $1.4 a share. If Wal-Mart earns $1 again in 2002, and the total inflation from 2002 through 2010 is 35%, then the equivalent 2002 earnings in 2010 is $1.35. So on and so forth, you get the equivalent earnings of past 10 years. Then you add them together and divided the sum by 10 to get E10.

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.

For example, RH's adjusted earnings per share data for the three months ended in Jan. 2025 was:

Adj_EPS= Earnings per Share (Diluted) /CPI of Jan. 2025 (Change)*Current CPI (Jan. 2025)
=0.667/134.0288*134.0288
=0.667

Current CPI (Jan. 2025) = 134.0288.

RH Quarterly Data

per share eps CPI Adj_EPS
201504 0.157 99.824 0.211
201507 0.645 100.691 0.859
201510 0.437 100.346 0.584
201601 0.728 99.957 0.976
201604 -0.291 100.947 -0.386
201607 0.154 101.524 0.203
201610 0.054 101.988 0.071
201701 0.216 102.456 0.283
201704 -0.084 103.167 -0.109
201707 -0.243 103.278 -0.315
201710 0.477 104.070 0.614
201801 0.008 104.578 0.010
201804 0.823 105.708 1.043
201807 1.960 106.324 2.471
201810 0.635 106.695 0.798
201901 1.235 106.200 1.559
201904 1.273 107.818 1.582
201907 2.551 108.250 3.158
201910 1.962 108.577 2.422
202001 2.397 108.841 2.952
202004 -0.156 108.173 -0.193
202007 3.228 109.318 3.958
202010 1.394 109.861 1.701
202101 3.539 110.364 4.298
202104 3.503 112.673 4.167
202107 5.998 115.183 6.979
202110 5.069 116.696 5.822
202201 4.340 118.619 4.904
202204 6.686 121.978 7.347
202207 4.463 125.002 4.785
202210 3.837 125.734 4.090
202301 3.907 126.223 4.149
202304 1.605 127.992 1.681
202307 3.037 128.974 3.156
202310 -0.114 129.810 -0.118
202401 0.523 130.124 0.539
202404 -0.186 132.289 -0.188
202407 1.337 132.708 1.350
202410 1.524 133.182 1.534
202501 0.667 134.029 0.667

Add all the adjusted EPS together and divide 10 will get our e10.


RH  (FRA:RS1) E10 Explanation

If a company grows much fast than inflation, E10 may underestimate the company's earnings power. Shiller PE Ratio can seem to be too high even the actual P/E is low.

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

RH's Shiller P/E Ratio of today is calculated as

Shiller PE Ratio=Share Price/E10
=162.58/8.82
=18.43

* 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.

During the past 13 years, the highest Shiller P/E Ratio of RH was 1030.90. The lowest was 16.31. And the median was 125.75.


Be Aware

Shiller PE Ratio works better for cyclical companies. It gives you a better idea on the company's real earnings power.


RH E10 Related Terms

Thank you for viewing the detailed overview of RH's E10 provided by GuruFocus.com. Please click on the following links to see related term pages.


RH Business Description

Traded in Other Exchanges
Address
15 Koch Road, Corte Madera, CA, USA, 94925
RH is a luxury furniture and lifestyle retailer operating in the $136 billion domestic furniture and home furnishing industry. The firm offers merchandise across many categories including furniture, lighting, textiles, bath, decor, and children and is growing the presence of its hospitality business with 22 restaurant locations, including RH Guesthouse. RH innovates, curates, and integrates products, categories, services, and businesses across channels and brand extensions (RH Modern and Waterworks, for example). RH is fully integrated across channels and is positioned to broaden its addressable market over the next decade by expanding abroad, with its World of RH digital platform (highlighting offerings outside of home furnishings), and with offerings in architecture, media, and more.

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