Rent the Runway Inc (RENT) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Rent the Runway Inc stock (RENT) is currently trading at $4.81. Rent the Runway Inc PE ratio is 1.67. Rent the Runway Inc PS ratio (Price-to-Sales) is 0.51. Analyst consensus price target for RENT is $40.00. WallStSmart rates RENT as Sell.
- RENT PE ratio analysis and historical PE chart
- RENT PS ratio (Price-to-Sales) history and trend
- RENT intrinsic value — DCF, Graham Number, EPV models
- RENT stock price prediction 2025 2026 2027 2028 2029 2030
- RENT fair value vs current price
- RENT insider transactions and insider buying
- Is RENT undervalued or overvalued?
- Rent the Runway Inc financial analysis — revenue, earnings, cash flow
- RENT Piotroski F-Score and Altman Z-Score
- RENT analyst price target and Smart Rating
Rent the Runway Inc
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RENT Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Rent the Runway Inc (RENT)
RENT trades at a significant discount to its Graham intrinsic value of $19.58, offering a 71% margin of safety — a level value investors typically seek before buying.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Rent the Runway Inc (RENT) · 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. Concerns around market cap and return on equity. Significant fundamental concerns warrant caution or avoidance.
Rent the Runway Inc (RENT) Key Strengths (1)
Paying less than $1 for every $1 of annual revenue
Supporting Valuation Data
Rent the Runway Inc (RENT) Areas to Watch (7)
Company is destroying shareholder value
Losing money on operations
Very expensive at 12.4x book value
Very thin margins, barely profitable
Micro-cap company with very limited liquidity and high volatility
Low institutional interest, mostly retail-driven
Solid revenue growth at 15.40% per year
Rent the Runway Inc (RENT) Detailed Analysis Report
Overall Assessment
This company scores 28/100 in our Smart Analysis, earning a F grade. Out of 8 metrics analyzed, 1 register as strengths (avg 10.0/10) while 7 fall into concern territory (avg 2.4/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Price/Sales. Valuation metrics including Price/Sales (0.51) suggest the stock is attractively priced.
The Bear Case
The primary concerns are Return on Equity, Operating Margin, Price/Book. Some valuation metrics including Price/Book (12.39) suggest expensive pricing. Growth concerns include Revenue Growth at 15.40%, which may limit upside. Profitability pressure is visible in Return on Equity at -775.00%, Operating Margin at -16.80%, Profit Margin at 3.37%.
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 -775.00% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at 15.40% 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 Operating 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.
RENT Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
RENT's Price-to-Sales ratio of 0.51x sits near its historical average of 0.52x (57th percentile), suggesting the market is pricing in steady-state growth. The current valuation is 20% below its historical high of 0.64x set in Mar 2026, and 9% above its historical low of 0.47x in Mar 2026. Over the past 12 months, the PS ratio has compressed from ~0.6x as trailing revenue scaled faster than the stock price.
WallStSmart Analysis Synopsis
Data-driven financial summary for Rent the Runway Inc (RENT) · CONSUMER CYCLICAL › APPAREL RETAIL
The Big Picture
Rent the Runway Inc is a strong growth company balancing expansion with improving profitability. Revenue reached 315M with 15% growth year-over-year. Profit margins are strong at 337.0%, reflecting pricing power and operational efficiency.
Key Findings
Debt-to-equity ratio of -5.76 indicates a conservative balance sheet with 51M in cash.
Free cash flow is -2M, meaning the company is burning cash. This may be acceptable for high-growth companies investing heavily.
What to Watch Next
Debt management: total debt of 202M is significantly higher than cash (51M). Monitor refinancing risk.
Sector dynamics: monitor APPAREL RETAIL industry trends, competitive moves, and regulatory changes that could impact Rent the Runway Inc.
Bottom Line
Rent the Runway Inc offers an attractive blend of growth (15% 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
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About Rent the Runway Inc(RENT)
NASDAQ
CONSUMER CYCLICAL
APPAREL RETAIL
USA
Rent the Runway, Inc. rents women's designer dresses, clothing and accessories through its stores and online platform.