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Ralph Lauren Corporation (RL) Fair Value & Analysis

Consumer Cyclical · US · Market cap $22.3B

RL Ralph Lauren Corporation logo Ralph Lauren Corporation RL · US
Price$387.39
Fair Value$220.38
Upside-43.1%
Quality82/100
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Healthy Growth
Solidly profitable · 11.6% net margin
Low debt · generates free cash flow
0.99% dividend yield
Mixed vs. peers (6/15)
Wide moat 69/100
Evidence: High Range $150.03 – $323.95 Share as image

Fair value as of: Aug 13, 2026

From 23 valuation models · updated today

Fair value updated Aug 13, 2026, revised from $224.21 to $220.38 (−1.7%) since Jul 16, 2026. Share price +5.0% over the past month.

A strong business, but screening 43% overvalued on our models.

What matters now

  • A high-quality business (quality 82/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case ($323.95). The favourable scenario is already priced in.
  • A fairly wide model range ($150.03 to $323.95) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

$413.24 $77.94 Fair Value $220.38 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range $77.94 – $413.24 · fair‑value band $150.03 – $323.95 · the $387.39 price screens above the $220.38 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Ralph Lauren Corporation (RL) currently trades at $387.39, while our model-based Fair Value estimate is $220.38, implying the stock looks roughly 43.1% overvalued today. The Quality Score stands at 82/100 (high quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Ralph Lauren Corporation generated revenue of $8.1B at a net margin of 11.6%. Revenue grew 16.6% year over year. It earns a return on equity of 34.7%. Net debt stands at $1.0B. Fundamentals as of Aug 13, 2026

Our scenario range runs from $150.03 (bear case) to $323.95 (bull case); at $387.39, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 2% below its 52-week high and 52% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 27% fair-value upside, at -43%, RL screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF $144.39 $199.06 $274.25 80
Residual Income $105.97 $150.10 $1,251 76
Rev-Margin DCF $124.24 $181.92 $244.62 74
All 23 models by family
DCF Models
FCF DCF $140.84 $200.11 $285.48 38
Owner Earnings $144.28 $205.12 $292.77 31
5Y Revenue Exit $124.24 $180.55 $249.84 39
5Y EBITDA Exit $172.92 $267.77 $374.50 41
5Y P/E Exit $198.29 $313.24 $428.95 38
10Y Revenue Exit $126.08 $177.73 $241.81 36
10Y EBITDA Exit $159.76 $236.93 $333.28 37
10Y P/E Exit $175.66 $267.78 $373.23 35
Earnings-Based
Graham-Dodd $102.72 $252.57 $327.01 54
PEG = 1.0 $45.47 $64.96 $84.44 46
EPV $156.12 $180.14 $201.15 59
Multiples
P/E Multiple $249.25 $332.33 $415.41 63
P/S Multiple $117.22 $156.30 $195.37 58
P/B Multiple $136.78 $182.37 $227.96 55
EV/EBIT $267.55 $352.72 $437.90 53
EV/EBITDA $216.03 $284.04 $352.04 54
EV/Revenue $121.43 $168.32 $215.21 43
Asset-Based
NCAV (Graham) $22.80 $30.55 $45.59 50
Growth DCF
Growth DCF $144.39 $199.06 $274.25 80
Rev-Margin DCF $124.24 $181.92 $244.62 74
Economic Profit
Residual Income $105.97 $150.10 $1,251 76
ROIC Compounder $160.96 $191.69 $222.74 72
Growth Earnings
Growth-Adj P/E $190.49 $272.12 $353.76 68

Widest divergence: Growth Earnings ($272.12) versus Asset-Based ($30.55). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) $8.1B
Revenue growth (YoY) +16.6%
Net margin 11.6%
Return on equity 34.7%
Free cash flow $746M FY2026
P/E ratio 24.4 as of Jul 16, 2026
More key figures
Operating margin 13.4%
EPS (TTM) $15.34
Dividend yield 1.0%
EPS growth (YoY) +20.0%
Net debt $1.0B FY2026

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 82/100

Of which business quality 79 · Market factors (momentum, volatility) 59

Profitability 87
Margins and returns on capital today
Quality Growth 74
Are margins and returns improving?
Cashflow 50
Earnings quality: real cash, not paper profit
Fin. Strength 87
Balance sheet, leverage, solvency risk
Investment 86
Disciplined investing over empire-building
Low Volatility 45
Calm price path (market factor)
Momentum 61
Price trend over the last 3–12 months (market factor)
52W Momentum 73
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally.

Full company description

Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. The company offers apparel, including a range of men's, women's, and children's clothing; footwear and accessories, which comprise casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, fashion and fine jewelry, scarves, hats, gloves, and umbrellas, as well as leather goods comprising handbags, luggage, small leather goods, and belts; home products, such as bed and bath lines, furniture, fabric and wall coverings, lighting, dining, floor coverings, decorative accessories, and giftware; and fragrances. The company sells apparel and accessories under the Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren Ralph Lauren, RLX Ralph Lauren, Polo Ralph Lauren Children, and Chaps brands; women's fragrances under the Ralph Lauren Collection, Woman by Ralph Lauren, Romance Collection, and Ralph Collection brand names; and men's fragrances under the Ralph's Club, Purple Label, Polo Blue, Polo Red, Polo Green, Polo Black, Polo 67, Safari, Polo Sport, and Big Pony Men's brand names. Its restaurant collection includes The Polo Bar in New York City; RL Restaurant in Chicago; Ralph's in Paris; The Bar at Ralph Lauren located in Milan; Ralph's Bar located in Chengdu, China; and Ralph's Coffee concept. The company sells its products to department stores, specialty stores, and golf and pro shops, as well as directly to consumers through its retail stores, concession-based shop-within-shops, and its digital commerce sites. It operates retail stores and concession-based shop-within-shops; and operates Ralph Lauren stores and shops through licensing partners. Ralph Lauren Corporation was founded in 1967 and is based in New York, New York.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Ralph Lauren Corporation reported revenue of $8.1B in FY2026 versus $6.2B in FY2022, a compound +6.9%/yr. Reported net income was $941M in FY2026, compounding +11.9%/yr from FY2022.

Growth Quality 98/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
$8.1B
Latest YoY
+14.6%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.0%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+13.0%
Avg. growth/yr (29Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.9%
Revenue +6.9%/yr
FY22 $6.2B
FY23 $6.4B
FY24 $6.6B
FY25 $7.1B
FY26 $8.1B
Net income +11.9%/yr
FY22 $600M
FY23 $523M
FY24 $646M
FY25 $743M
FY26 $941M
Character of growth · EPS growth decomposed (2015-2026) +7.1 % p.a.
Revenue per share +3.0 pp

of which total revenue −0.3 pp · buybacks/dilution +3.3 pp

EBIT margin +2.1 pp
Tax rate +1.2 pp
Residual (interest, one-offs) +0.8 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

RL screens 43% overvalued. Compare with H & M Hennes & Mauritz AB →

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Cite: Fair Value Calculator (2026). "Ralph Lauren Corporation Fair Value". https://www.fairvalue-calculator.com/stock/RL

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Apparel Manufacturing · 214 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 82 · Top 25%
Fair Value upside −43% · Below median
Return on equity (TTM) 35% · Top 25%
Return on assets 11% · Top 25%
Net margin (TTM) 12% · Top 25%
Operating margin (TTM) 13% · Top 25%
Revenue growth 17% · Top 25%
Dividend yield (TTM) 1.0% · Below median
Debt / equity 0.44× · Higher than 75% of peers

Valuation Multiples vs Apparel Manufacturing median · lower = cheaper

P/E (TTM) 24.4× · Pricier than median
P/B 7.84× · Pricier than 75% of peers
P/S (TTM) 2.74× · Pricier than 75% of peers
P/FCF 29.8× · Pricier than 75% of peers
EV/EBITDA 14.2× · Pricier than median
PEG 2.16× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 33
FUTURE 83 · sector 5
PAST 100 · sector 21
HEALTH 78 · sector 98
DIVIDEND 20 · sector 50

VALUE 0: the price sits above our fair-value range.

Insider activity: 46/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Apparel Manufacturing stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
H & M Hennes & Mauritz AB HMB kr 174.25 kr 165.47 -5%
LPP SA LPP 22,220 PLN 17,754 PLN -20%
Bosideng International Holdings 3998 HK$4.65 HK$5.92 +27%
Youngor Fashion Co 600177 ¥7.78 ¥5.59 -28%
Page Industries Limited PAGEIND ₹38,295 ₹12,395 -68%
Hla Group 600398 ¥6.07 ¥9.92 +63%
Youngone Corporation 111770 85,200 KRW 188,736 KRW +122%
F&F Co 383220 68,800 KRW 179,500 KRW +161%
Youngone Holdings 009970 188,300 KRW 697,038 KRW +270%
Wiselink Co 8932 105.00 TWD 37.95 TWD -64%

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Frequently asked questions

Is Ralph Lauren Corporation (RL) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of $220.38 versus a price of $387.39, about −43% (overvalued).
What is the fair value of RL?
Our model-based fair value for Ralph Lauren Corporation is $220.38 (as of Aug 13, 2026), built from audited fundamentals. The current price is $387.39.
What is the quality score of RL?
Ralph Lauren Corporation has a Quality Score of 82/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Ralph Lauren Corporation (RL)?
Ralph Lauren Corporation reported trailing-twelve-month revenue of about $8.1B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of RL?
The net profit margin of Ralph Lauren Corporation is about 11.6%, meaning it keeps roughly 11.6% of revenue as net income. Based on the latest reported figures.
Does Ralph Lauren Corporation pay a dividend?
Ralph Lauren Corporation currently shows a dividend yield of about 1.02% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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