As of May 23, 2025, Robert Half International Inc's estimated intrinsic value ranges from $43.98 to $74.59 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $60.18 | +30.5% |
| Discounted Cash Flow (5Y) | $47.99 | +4.1% |
| Dividend Discount Model (Multi-Stage) | $50.48 | +9.5% |
| Dividend Discount Model (Stable) | $43.98 | -4.6% |
| Earnings Power Value | $74.59 | +61.8% |
Is Robert Half International Inc (RHI) undervalued or overvalued?
With the current market price at $46.11, the stock appears to be moderately undervalued.
Intrinsic value represents the "true" worth of a company based on its fundamentals rather than market sentiment. We've employed multiple methodologies to triangulate Robert Half International Inc's intrinsic value, including:
The cost of capital is a critical factor in valuation models, representing the required return for investors.
| WACC Component | Low | High |
|---|---|---|
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.71 | 0.89 |
| Cost of equity | 7.1% | 9.8% |
| Cost of debt | 4.5% | 4.5% |
| Tax rate | 27.1% | 27.9% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 5.2% | 6.5% |
Our DCF model projects cash flows over 5-year and 10-year horizons, with the following key assumptions:
| DCF Model | Fair Value | Enterprise Value | % from Terminal Value |
|---|---|---|---|
| 5-Year Growth | $48 | $4,358M | 89.0% |
| 10-Year Growth | $60 | $5,601M | 81.2% |
| 5-Year EBITDA | $30 | $2,501M | 80.8% |
| 10-Year EBITDA | $33 | $2,821M | 62.7% |
The DDM values a company based on its expected future dividend payments. We used two approaches:
EPV assesses a company's value based on its current normalized earnings power, assuming no growth.
| EPV Component | Value |
|---|---|
| Normalized Earnings | $409M |
| Discount Rate (WACC) | 6.5% - 5.2% |
| Enterprise Value | $6,254M - $7,889M |
| Net Debt | $(538)M |
| Equity Value | $6,792M - $8,427M |
| Outstanding Shares | 102M |
| Fair Value | $67 - $83 |
| Selected Fair Value | $74.59 |
| Metric | Value |
|---|---|
| Market Capitalization | $4704M |
| Enterprise Value | $4166M |
| Trailing P/E | 22.92 |
| Forward P/E | 17.97 |
| Trailing EV/EBITDA | 7.55 |
| Current Dividend Yield | 450.23% |
| Dividend Growth Rate (5Y) | 9.04% |
| Debt-to-Equity Ratio | 0.96 |
To determine the most reliable intrinsic value estimate, we weigh each valuation method based on:
| Valuation Method | Weight | Weighted Value |
|---|---|---|
| Discounted Cash Flow (10Y) | 30% | $18.05 |
| Discounted Cash Flow (5Y) | 25% | $12.00 |
| Dividend Discount Model (Multi-Stage) | 20% | $10.10 |
| Dividend Discount Model (Stable) | 15% | $6.60 |
| Earnings Power Value | 10% | $7.46 |
| Weighted Average | 100% | $54.20 |
Based on our comprehensive valuation analysis, Robert Half International Inc's weighted average intrinsic value is $54.20, which is approximately 17.6% above the current market price of $46.11.
Key investment considerations:
Given these factors, we believe Robert Half International Inc is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.