Richelieu Hardware Valuation

Is RCH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RCH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RCH (CA$40.28) is trading above our estimate of fair value (CA$15.41)

Significantly Below Fair Value: RCH is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RCH?

Key metric: As RCH is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RCH. This is calculated by dividing RCH's market cap by their current earnings.
What is RCH's PE Ratio?
PE Ratio	24.8x
Earnings	CA$89.91m
Market Cap	CA$2.23b

RCH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.3x
Enterprise Value/EBITDA	14.1x
PEG Ratio	2.3x

Price to Earnings Ratio vs Peers

How does RCH's PE Ratio compare to its peers?

The above table shows the PE ratio for RCH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	14.1x
RUS Russel Metals	14.5x	15.3%	CA$2.6b
ADEN ADENTRA	15.4x	n/a	CA$1.0b
FTT Finning International	11.5x	10.6%	CA$5.2b
DBM Doman Building Materials Group	15.1x	26.3%	CA$853.7m
RCH Richelieu Hardware	24.8x	10.7%	CA$2.2b

Price-To-Earnings vs Peers: RCH is expensive based on its Price-To-Earnings Ratio (24.8x) compared to the peer average (14.1x).

Price to Earnings Ratio vs Industry

How does RCH's PE Ratio compare vs other companies in the North American Trade Distributors Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: RCH is expensive based on its Price-To-Earnings Ratio (24.8x) compared to the North American Trade Distributors industry average (16.4x).

Price to Earnings Ratio vs Fair Ratio

What is RCH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RCH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	24.8x
Fair PE Ratio	17.4x

Price-To-Earnings vs Fair Ratio: RCH is expensive based on its Price-To-Earnings Ratio (24.8x) compared to the estimated Fair Price-To-Earnings Ratio (17.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst RCH forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	CA$40.28	CA$43.75 +8.6%	1.7%	CA$44.50	CA$43.00	n/a	2
Nov ’25	CA$36.96	CA$43.75 +18.4%	1.7%	CA$44.50	CA$43.00	n/a	2
Oct ’25	CA$40.50	CA$44.75 +10.5%	1.7%	CA$45.50	CA$44.00	n/a	2
Sep ’25	CA$39.34	CA$44.75 +13.8%	1.7%	CA$45.50	CA$44.00	n/a	2
Aug ’25	CA$40.47	CA$44.75 +10.6%	1.7%	CA$45.50	CA$44.00	n/a	2
Jul ’25	CA$41.19	CA$45.25 +9.9%	0.6%	CA$45.50	CA$45.00	n/a	2
Jun ’25	CA$38.04	CA$45.25 +19.0%	0.6%	CA$45.50	CA$45.00	n/a	2
May ’25	CA$39.14	CA$45.25 +15.6%	0.6%	CA$45.50	CA$45.00	n/a	2
Apr ’25	CA$42.21	CA$45.75 +8.4%	0.5%	CA$46.00	CA$45.50	n/a	2
Mar ’25	CA$44.00	CA$45.75 +4.0%	0.5%	CA$46.00	CA$45.50	n/a	2
Feb ’25	CA$43.99	CA$45.75 +4.0%	0.5%	CA$46.00	CA$45.50	n/a	2
Jan ’25	CA$47.98	CA$45.75 -4.6%	3.8%	CA$47.50	CA$44.00	n/a	2
Dec ’24	CA$43.21	CA$45.75 +5.9%	3.8%	CA$47.50	CA$44.00	CA$41.08	2
Nov ’24	CA$41.80	CA$45.75 +9.4%	3.8%	CA$47.50	CA$44.00	CA$36.96	2
Oct ’24	CA$39.78	CA$46.50 +16.9%	3.2%	CA$48.00	CA$45.00	CA$40.50	2
Sep ’24	CA$43.70	CA$46.50 +6.4%	3.2%	CA$48.00	CA$45.00	CA$39.34	2
Aug ’24	CA$44.11	CA$46.50 +5.4%	3.2%	CA$48.00	CA$45.00	CA$40.47	2
Jul ’24	CA$41.90	CA$46.50 +11.0%	5.4%	CA$49.00	CA$44.00	CA$41.19	2
Jun ’24	CA$43.60	CA$47.50 +8.9%	3.2%	CA$49.00	CA$46.00	CA$38.04	2
May ’24	CA$41.01	CA$47.50 +15.8%	3.2%	CA$49.00	CA$46.00	CA$39.14	2
Apr ’24	CA$37.34	CA$47.50 +27.2%	3.2%	CA$49.00	CA$46.00	CA$42.21	2
Mar ’24	CA$40.12	CA$50.00 +24.6%	8.0%	CA$54.00	CA$46.00	CA$44.00	2
Feb ’24	CA$40.17	CA$50.00 +24.5%	8.0%	CA$54.00	CA$46.00	CA$43.99	2
Jan ’24	CA$36.21	CA$51.00 +40.8%	7.8%	CA$55.00	CA$47.00	CA$47.98	2
Dec ’23	CA$38.48	CA$51.00 +32.5%	7.8%	CA$55.00	CA$47.00	CA$43.21	2

Analyst Forecast: Target price is less than 20% higher than the current share price.