Josh Arnold
Long/short equity

Restoration Hardware Looks Expensive, But Worth A Look Anyway


In the retail space there are many names in each segment vying for consumers' limited discretionary dollars. This crowded landscape makes it challenging for consumers and investors to pick the best places to place their money but in the home furnishings space, there is a clear choice. In this article, we'll take a look at Restoration Hardware (NYSE:RH), the relatively newly public company that has made huge waves in the home furnishings industry and is attracting enormous amounts of attention from consumers and investors alike.

(click to enlarge)

To begin, we'll take a look at RH's projected earnings stream and its relative value compared to today's price. To do this, I'll use a DCF-type model that you...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details