Ralph Lauren Corporation

DB:PRL Stock Report

Market Cap: €14.7b

Ralph Lauren Valuation

Is PRL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of PRL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€317.30
Fair Value
25.5% undervalued intrinsic discount
17
Number of Analysts

Below Fair Value: PRL (€236.45) is trading below our estimate of fair value (€317.3)

Significantly Below Fair Value: PRL is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PRL?

Key metric: As PRL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for PRL. This is calculated by dividing PRL's market cap by their current earnings.
What is PRL's PE Ratio?
PE Ratio22.3x
EarningsUS$742.90m
Market CapUS$16.74b

Price to Earnings Ratio vs Peers

How does PRL's PE Ratio compare to its peers?

The above table shows the PE ratio for PRL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.2x
ADS adidas
37.5x22.95%€38.2b
BOSS Hugo Boss
12.8x10.28%€2.7b
BIJ Bijou Brigitte modische Accessoires
13.9xn/a€328.6m
PUM PUMA
16.6x20.42%€3.2b
PRL Ralph Lauren
22.3x7.36%€16.7b

Price-To-Earnings vs Peers: PRL is expensive based on its Price-To-Earnings Ratio (22.3x) compared to the peer average (20.2x).

Price to Earnings Ratio vs Industry

How does PRL's PE Ratio compare vs other companies in the European Luxury Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
PRL 22.3xIndustry Avg. 17.0xNo. of Companies9PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: PRL is expensive based on its Price-To-Earnings Ratio (22.3x) compared to the European Luxury industry average (17.2x).

Price to Earnings Ratio vs Fair Ratio

What is PRL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PRL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.3x
Fair PE Ratio20.2x

Price-To-Earnings vs Fair Ratio: PRL is expensive based on its Price-To-Earnings Ratio (22.3x) compared to the estimated Fair Price-To-Earnings Ratio (20.2x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst PRL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€236.45
€264.20
+11.74%
17.81%€338.04€145.25n/a17
May ’26€198.20
€240.07
+21.13%
18.79%€301.64€145.53n/a17
Apr ’26€207.00
€270.20
+30.53%
17.45%€321.48€152.43n/a17
Mar ’26€258.40
€281.67
+9.01%
17.50%€335.54€159.09n/a17
Feb ’26€246.45
€236.89
-3.88%
20.19%€320.28€144.71n/a17
Jan ’26€217.70
€225.20
+3.44%
17.56%€287.52€143.76n/a18
Dec ’25€209.65
€219.61
+4.75%
17.58%€283.95€140.08n/a18
Nov ’25€180.08
€183.84
+2.09%
17.73%€263.87€103.89n/a18
Oct ’25€172.78
€170.52
-1.31%
15.16%€223.68€101.10n/a19
Sep ’25€153.16
€171.54
+12.00%
14.30%€225.10€101.75n/a19
Aug ’25€161.36
€175.64
+8.85%
14.16%€230.48€104.17n/a19
Jul ’25€161.08
€175.70
+9.08%
14.19%€230.18€104.04n/a19
Jun ’25€169.10
€175.70
+3.90%
14.19%€230.18€104.04n/a19
May ’25€154.80
€177.38
+14.59%
14.14%€228.58€105.86€198.2020
Apr ’25€172.82
€173.70
+0.51%
14.86%€224.75€104.08€207.0019
Mar ’25€171.26
€173.05
+1.04%
15.34%€225.48€104.42€258.4019
Feb ’25€132.08
€140.16
+6.12%
14.87%€174.92€92.55€246.4519
Jan ’25€130.80
€128.53
-1.73%
12.45%€153.95€90.56€217.7019
Dec ’24€118.04
€126.97
+7.57%
13.27%€156.32€91.95€209.6519
Nov ’24€106.20
€128.49
+20.99%
12.75%€156.72€94.41€180.0818
Oct ’24€108.44
€128.90
+18.87%
13.14%€155.67€93.78€172.7818
Sep ’24€107.04
€124.89
+16.68%
13.51%€154.91€91.66€153.1616
Aug ’24€118.64
€122.60
+3.34%
14.27%€153.69€90.94€161.3616
Jul ’24€112.46
€120.70
+7.33%
13.28%€153.25€91.22€161.0816
Jun ’24€98.86
€122.37
+23.78%
13.50%€156.61€93.22€169.1015
May ’24€103.02
€119.29
+15.80%
12.97%€141.97€92.19€154.8016
AnalystConsensusTarget
Consensus Narrative from 17 Analysts
€258.92
Fair Value
8.7% undervalued intrinsic discount
17
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/05/23 23:46
End of Day Share Price 2025/05/23 00:00
Earnings2025/03/29
Annual Earnings2025/03/29

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Ralph Lauren Corporation is covered by 41 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullArgus Research Company
Ishan MajumdarBaptista Research
Paul KearneyBarclays