As of May 22, 2025, Revolve Group Inc's estimated intrinsic value ranges from $9.84 to $33.85 per share, depending on the valuation methodology applied.
| Valuation Method | Fair Value (USD) | Implied Upside/Downside |
|---|---|---|
| Discounted Cash Flow (10Y) | $33.85 | +69.0% |
| Discounted Cash Flow (5Y) | $31.18 | +55.6% |
| Dividend Discount Model (Multi-Stage) | $11.38 | -43.2% |
| Dividend Discount Model (Stable) | $9.84 | -50.9% |
| Earnings Power Value | $12.36 | -38.3% |
Is Revolve Group Inc (RVLV) undervalued or overvalued?
With the current market price at $20.03, 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 Revolve Group 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 | 1.02 | 1.6 |
| Cost of equity | 8.6% | 13.9% |
| Cost of debt | 5.0% | 5.0% |
| Tax rate | 16.2% | 23.8% |
| Debt/Equity ratio | 1 | 1 |
| After-tax WACC | 6.4% | 8.8% |
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 | $31 | $1,967M | 82.9% |
| 10-Year Growth | $34 | $2,158M | 68.5% |
| 5-Year EBITDA | $41 | $2,636M | 87.3% |
| 10-Year EBITDA | $43 | $2,776M | 75.5% |
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 | $46M |
| Discount Rate (WACC) | 8.8% - 6.4% |
| Enterprise Value | $524M - $726M |
| Net Debt | $(257)M |
| Equity Value | $781M - $982M |
| Outstanding Shares | 71M |
| Fair Value | $11 - $14 |
| Selected Fair Value | $12.36 |
| Metric | Value |
|---|---|
| Market Capitalization | $1428M |
| Enterprise Value | $1172M |
| Trailing P/E | 28.82 |
| Forward P/E | 23.63 |
| Trailing EV/EBITDA | 24.25 |
| Current Dividend Yield | 0.00% |
| Dividend Growth Rate (5Y) | 0.00% |
| Debt-to-Equity Ratio | 0.94 |
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% | $10.16 |
| Discounted Cash Flow (5Y) | 25% | $7.79 |
| Dividend Discount Model (Multi-Stage) | 20% | $2.28 |
| Dividend Discount Model (Stable) | 15% | $1.48 |
| Earnings Power Value | 10% | $1.24 |
| Weighted Average | 100% | $22.94 |
Based on our comprehensive valuation analysis, Revolve Group Inc's weighted average intrinsic value is $22.94, which is approximately 14.5% above the current market price of $20.03.
Key investment considerations:
Given these factors, we believe Revolve Group Inc is currently moderately undervalued with the potential for long-term appreciation based on the company's growth trajectory and financial strength.