TheRealReal Inc (REAL) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
TheRealReal Inc stock (REAL) is currently trading at $9.15. TheRealReal Inc PS ratio (Price-to-Sales) is 1.48. Analyst consensus price target for REAL is $18.19. WallStSmart rates REAL as Sell.
- REAL PE ratio analysis and historical PE chart
- REAL PS ratio (Price-to-Sales) history and trend
- REAL intrinsic value — DCF, Graham Number, EPV models
- REAL stock price prediction 2025 2026 2027 2028 2029 2030
- REAL fair value vs current price
- REAL insider transactions and insider buying
- Is REAL undervalued or overvalued?
- TheRealReal Inc financial analysis — revenue, earnings, cash flow
- REAL Piotroski F-Score and Altman Z-Score
- REAL analyst price target and Smart Rating
TheRealReal Inc
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Smart Analysis
TheRealReal Inc (REAL) · 8 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in price/sales, institutional own.. Concerns around return on equity and operating margin. Significant fundamental concerns warrant caution or avoidance.
TheRealReal Inc (REAL) Key Strengths (2)
99.41% of shares held by major funds and institutions
Paying $1.48 for every $1 of annual revenue
Supporting Valuation Data
TheRealReal Inc (REAL) Areas to Watch (6)
Company is destroying shareholder value
Company is losing money with a negative profit margin
Near-zero operating margins, business under pressure
Premium pricing at 4.8x book value
Small-cap company with higher risk but more growth potential
Solid revenue growth at 18.30% per year
Supporting Valuation Data
TheRealReal Inc (REAL) Detailed Analysis Report
Overall Assessment
This company scores 33/100 in our Smart Analysis, earning a F grade. Out of 8 metrics analyzed, 2 register as strengths (avg 9.0/10) while 6 fall into concern territory (avg 2.7/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Institutional Own., Price/Sales. Valuation metrics including Price/Sales (1.48) suggest the stock is attractively priced.
The Bear Case
The primary concerns are Return on Equity, Profit Margin, Operating Margin. Some valuation metrics including Price/Book (4.84) suggest expensive pricing. Growth concerns include Revenue Growth at 18.30%, which may limit upside. Profitability pressure is visible in Return on Equity at -933.00%, Operating Margin at 3.18%, Profit Margin at -6.03%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Return on Equity improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at -933.00% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 18.30% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. Return on Equity and Profit Margin are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
REAL Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
REAL's Price-to-Sales ratio of 1.48x trades at a deep discount to its historical average of 3.17x (45th percentile). The current valuation is 90% below its historical high of 14.54x set in Jul 2019, and 575% above its historical low of 0.22x in Apr 2023. Over the past 12 months, the PS ratio has expanded from ~1.1x, reflecting growing market expectations outpacing revenue growth.
WallStSmart Analysis Synopsis
Data-driven financial summary for TheRealReal Inc (REAL) · CONSUMER CYCLICAL › LUXURY GOODS
The Big Picture
TheRealReal Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 693M with 18% growth year-over-year. The company is currently unprofitable, posting a -6.0% profit margin.
Key Findings
Generating 43M in free cash flow and 50M in operating cash flow. Earnings are translating into actual cash generation.
The company is unprofitable with a -6.0% profit margin. The path to breakeven will be the key catalyst.
What to Watch Next
Volatility is elevated with a beta of 2.75, so expect amplified moves relative to the broader market.
Sector dynamics: monitor LUXURY GOODS industry trends, competitive moves, and regulatory changes that could impact TheRealReal Inc.
Bottom Line
TheRealReal Inc offers an attractive blend of growth (18% revenue expansion) and improving fundamentals. The company is transitioning from pure growth to profitable growth, a critical inflection point. Watch for sustained margin expansion as the key signal.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(25 last 3 months)
| Insider | Type | Shares |
|---|---|---|
MADAN, GOPAL AJAY Chief Financial Officer | Sell | -51,585 |
Data sourced from SEC Form 4 filings
Last updated: 10:04:38 AM
About TheRealReal Inc(REAL)
NASDAQ
CONSUMER CYCLICAL
LUXURY GOODS
USA
RealReal, Inc. operates an online marketplace for consigned luxury goods. The company is headquartered in San Francisco, California.