Ralph Lauren Corporation
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, sne…
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.Looks overvalued
Other models: USD 210.53–272.35 (median 214.69). The recommended value is in line with them.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Details and the full model are below.
Market price above modeled range
Free-cash-flow DCF using TTM through 30 Jun 2026 reported free cash flow, with cash, debt, and shares from the latest report. Base assumptions are 6.09% growth, 3.1% terminal growth, and 10.8% discount. Low/high cases vary growth by 2 and terminal growth/discount by 1 percentage point; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 6.09%, discount rate 10.80%, terminal growth 3.10% (sector defaults). See a worked example.
Blended growth assumption: 6.1% (sector default 7.2%, own revenue history 6.9%, analyst revenue consensus 5.1%).
5-year outlook: relative outlook of about 6.5% a year (High confidence), anchored to a 7% market return and adjusted for how this company ranks against others. A ranking aid, not a prediction. See the full forecast.
Analyst consensus expects revenue growth of 5.1% a year; the growth assumption used is 6.1%.
Adjust assumptions
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — USD 240.88 (-35.7%)
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EPS-based Gordon proxy
— USD 214.69 (-42.7%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— USD 240.88 (-35.7%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— USD 210.53 (-43.8%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
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EV/EBITDA (12x)
— USD 272.35 (-27.3%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— USD 239.72 (-36.0%)
Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
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EV/Sales (Rule of 40)
— USD 631.49 (+68.5%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear USD 177.01 | -111.7% |
| Base USD 240.88 | -55.6% |
| Bull USD 351.21 | -6.7% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At USD 374.70 the market implies about this annual free-cash-flow growth for 5 years (terminal 3.1%, discount 10.8%).
Compare: the market implies 16.5% a year, this model assumes 6.1%. The market expects more than this model does, which is why it reads as overvalued.
How the Free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 8.8% | 9.8% | 10.8% | 11.8% | 12.8% |
|---|---|---|---|---|---|
| 2.1% | 277.16 | 233.40 | 201.00 | 176.04 | 156.22 |
| 4.1% | 304.04 | 255.88 | 220.23 | 192.78 | 170.99 |
| 6.1% | 332.95 | 280.04 | 240.88 | 210.75 | 186.84 |
| 8.1% | 364.01 | 305.97 | 263.04 | 230.01 | 203.82 |
| 10.1% | 397.34 | 333.79 | 286.79 | 250.65 | 221.99 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 90 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +6.7% a year | 20 / 20 |
| Balance sheet | net debt 0.7x EBITDA | 20 / 20 |
| Margins | EBITDA margin 18% | 10 / 20 |
Peers in Consumer Discretionary
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| RL (this company) | USD 374.70 | -55.6% | 23.4 | 8.4 | 1.0% | 90 |
| KGF.L Kingfisher plc | GBP 3.70 | 45.5% | 26.8 | 1.1 | 3.3% | 74 |
| BWY.L Bellway p.l.c. | GBP 22.72 | 44.3% | 13.8 | 0.8 | 3.1% | 70 |
| DKNG DraftKings Inc. | USD 17.16 | 39.2% | – | 13.5 | – | 58 |
| INCH.L Inchcape plc | GBP 6.33 | 38.1% | 8.8 | 1.9 | 4.2% | 80 |
| ZAL.DE Zalando SE | EUR 27.37 | 36.9% | 108.0 | 2.6 | – | 80 |
| DECK Deckers Brands | USD 85.74 | 36.4% | 10.9 | 5.0 | – | 100 |
| CVNA Carvana | USD 71.95 | 34.6% | 9.5 | 3.7 | – | 87 |
| EXPE Expedia Group | USD 268.04 | 30.8% | 15.6 | 19.8 | 0.7% | 100 |
| Peer median | 13.8 | 3.2 | ||||
Dividends
Paid in the last 12 months: USD 3.83 per share · yield 1.02% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 2.913 |
| 2025 | 3.564 |
| 2024 | 3.225 |
| 2023 | 3.000 |
| 2022 | 2.938 |
| 2021 | 2.064 |
Trailing 12-month financials
TTM through 30 Jun 2026 · quarterly EODHD data · data downloaded 06 Nov 2026 12:56
| Revenue | USD 8,355,200,000 |
|---|---|
| EBITDA | USD 1,479,800,000 |
| EBIT | USD 1,243,400,000 |
| Net income | USD 982,900,000 |
| Free cash flow | USD 1,043,200,001 |
| Capital expenditures | USD 274,200,000 |
| Debt | USD 3,003,900,000 |
| Cash | USD 1,941,600,000 |
| Working capital | USD 1,959,100,000 |
| Shares outstanding | 61,300,000 |
| Reported dividends per share | USD 3.5987 |