A Look at RealReal (REAL) Valuation Following Board Resignation and Major Investor Exit

RealReal (REAL) has seen changes at the board level, as Gilbert L. Baird III resigned from the Board of Directors on November 17. This follows GreyLion Partners LP's sale of its stake in the company.

See our latest analysis for RealReal.

It’s been a dramatic year for RealReal, and momentum now appears to be building. While the recent board changes and GreyLion’s exit shook things up, the company’s share price has soared 77% over the past 90 days and boasts a remarkable 1-year total shareholder return of over 150%. Short-term price moves aside, this surge signals a shift in investor sentiment around RealReal as underlying performance trends and leadership evolve.

If the combination of boardroom moves and outsized returns piques your interest, now is a great moment to broaden your search and discover fast growing stocks with high insider ownership

But after such rapid gains and headline-grabbing boardroom shifts, is RealReal now undervalued with more upside to come? Or is the market already pricing in the company’s next phase of growth?

Most Popular Narrative: 11.4% Undervalued

With analysts currently valuing RealReal at a fair value of $15.13, about 11.4% higher than its previous closing price, the focus turns to the specific drivers that set this high bar. To understand what is backing this outlook, let’s examine the key catalyst that underpins these projections.

Continuous investment in AI-driven automation (Athena and other initiatives) is delivering ongoing reductions in processing costs per unit and streamlining authentication, enabling scalable operational efficiencies that lower unit costs and support sustained margin expansion and improved EBITDA.

Read the complete narrative.

Want to know why analysts see so much upside? The narrative’s secret sauce is a bold bet on margins expanding far beyond today’s levels, driven by game-changing automation and efficiency. Curious what numbers and ambitious forecasts make that story add up? Peek under the hood to discover the surprising projections turning heads in the market.

Result: Fair Value of $15.13 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks remain, including a reliance on continued supply growth and uncertainty around how quickly AI-driven efficiencies will actually improve margins.

Find out about the key risks to this RealReal narrative.

Another View: What Do Market Ratios Tell Us?

While analyst models see upside, RealReal actually looks expensive compared to the broader market using its price-to-sales ratio. The company trades at 2.4 times sales, far above both the US Specialty Retail industry average (0.5x) and the peer group average (0.7x). Its fair ratio, based on regression analysis, stands at 1.6x. Unless growth far outpaces expectations, there is valuation risk if the market shifts back toward that benchmark. Could enthusiasm for future profits be running ahead of reality?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own RealReal Narrative

If this perspective isn’t your style or you’d rather dive into the data firsthand, you can build your own unique RealReal story in just a few minutes. Do it your way

A great starting point for your RealReal research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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