Arhaus, Inc. (ARHS) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-34.6%

$8.20

vs $12.54 price

Levered DCF

$3.13

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

2.77

Grey zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	23.35×	19.18×	13.17×	9.85×	49.07×	98.46×	22.86×
P/B	3.77×	3.83×	4.86×	6.42×	26.01×	-65.52×	120.01×
P/S	1.14×	1.04×	1.28×	1.1×	2.28×	3.45×	0.74×
EV / EBITDA	10.49×	10×	7.94×	6.62×	30.16×	36.45×	9.56×
Gross margin	38.9%	39.4%	42.0%	42.7%	41.4%	39.3%	35.6%
Operating margin	6.4%	6.8%	12.8%	15.0%	4.2%	6.1%	6.0%
Net margin	4.9%	5.4%	9.7%	11.1%	2.6%	1.2%	1.5%
Current ratio	1.37×	1.32×	1.49×	1.26×	0.92×	0.9×	1.1×
Debt / equity	1.39×	1.45×	1.32×	1.85×	0.72×	-1.78×	27.9×
Interest coverage	17.36×	16×	30.15×	54.52×	6.14×	2.37×	2.21×
Dividend yield	0.0%	5.3%	0.0%	0.0%	3.4%	0.5%	0.0%
Payout ratio	0.5%	102.5%	0.0%	0.0%	293.2%	140.6%	0.0%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	16.1%	19.9%	36.8%	65.2%	30.3%	-22.7%	248.3%
Return on invested capital	6.5%	7.7%	15.3%	22.9%	18.0%	27.0%	18.5%
Return on assets	4.8%	5.7%	11.3%	14.6%	3.6%	1.9%	2.8%
Free cash flow yield	3.7%	3.0%	4.6%	1.6%	5.4%	7.7%	2.8%
Earnings yield	4.3%	5.2%	7.6%	10.1%	1.2%	0.3%	2.1%
Enterprise value	$1.9B	$1.6B	$1.9B	$1.6B	$1.7B	$1.7B	$436.1M
Net debt / EBITDA	1.8×	1.87×	0.96×	1.01×	-1.27×	-0.2×	1.58×
Cash conversion cycle (days)	113	109	94	118	123	94	95