Ralph Lauren Corporation

BIT:1RLA Stock Report

Market Cap: €14.7b

Ralph Lauren Valuation

Is 1RLA 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 1RLA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€296.80
Fair Value
18.8% undervalued intrinsic discount
17
Number of Analysts

Below Fair Value: 1RLA (€240.95) is trading below our estimate of fair value (€296.8)

Significantly Below Fair Value: 1RLA is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 1RLA?

Key metric: As 1RLA is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 1RLA. This is calculated by dividing 1RLA's market cap by their current earnings.
What is 1RLA's PE Ratio?
PE Ratio22.3x
EarningsUS$742.90m
Market CapUS$16.74b

Price to Earnings Ratio vs Peers

How does 1RLA's PE Ratio compare to its peers?

The above table shows the PE ratio for 1RLA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28.2x
MONC Moncler
22.9x7.03%€14.7b
BC Brunello Cucinelli
59.3x12.67%€7.1b
OVS OVS
14.4x13.83%€748.8m
SFL Safilo Group
16.1x19.87%€357.9m
1RLA Ralph Lauren
22.3x7.36%€16.7b

Price-To-Earnings vs Peers: 1RLA is good value based on its Price-To-Earnings Ratio (22.3x) compared to the peer average (28.2x).

Price to Earnings Ratio vs Industry

How does 1RLA's PE Ratio compare vs other companies in the European Luxury Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
1RLA 22.3xIndustry Avg. 17.0xNo. of Companies9PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 1RLA 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 1RLA'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.

1RLA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate 1RLA's Price-To-Earnings Fair Ratio for valuation analysis.

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 1RLA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€240.95
€264.20
+9.65%
17.81%€338.04€145.25n/a17
May ’26€195.62
€240.07
+22.72%
18.79%€301.64€145.53n/a17
Apr ’26n/a
€270.20
0%
17.45%€321.48€152.43n/a17
Mar ’26n/a
€281.67
0%
17.50%€335.54€159.09n/a17
Feb ’26n/a
€236.89
0%
20.19%€320.28€144.71n/a17
Jan ’26n/a
€225.20
0%
17.56%€287.52€143.76n/a18
Dec ’25n/a
€219.61
0%
17.58%€283.95€140.08n/a18
Nov ’25n/a
€183.84
0%
17.73%€263.87€103.89n/a18
Oct ’25n/a
€170.52
0%
15.16%€223.68€101.10n/a19
Sep ’25n/a
€171.54
0%
14.30%€225.10€101.75n/a19
Aug ’25n/a
€175.64
0%
14.16%€230.48€104.17n/a19
Jul ’25n/a
€175.70
0%
14.19%€230.18€104.04n/a19
Jun ’25n/a
€175.70
0%
14.19%€230.18€104.04n/a19
May ’25n/a
€177.38
0%
14.14%€228.58€105.86€195.6220
Apr ’25n/a
€173.70
0%
14.86%€224.75€104.08n/a19
Mar ’25n/a
€173.05
0%
15.34%€225.48€104.42n/a19
Feb ’25n/a
€140.16
0%
14.87%€174.92€92.55n/a19
Jan ’25n/a
€128.53
0%
12.45%€153.95€90.56n/a19
Dec ’24n/a
€126.97
0%
13.27%€156.32€91.95n/a19
Nov ’24n/a
€128.49
0%
12.75%€156.72€94.41n/a18
Oct ’24n/a
€128.90
0%
13.14%€155.67€93.78n/a18
Sep ’24n/a
€124.89
0%
13.51%€154.91€91.66n/a16
Aug ’24n/a
€122.60
0%
14.27%€153.69€90.94n/a16
Jul ’24n/a
€120.70
0%
13.28%€153.25€91.22n/a16
Jun ’24n/a
€122.37
0%
13.50%€156.61€93.22n/a15
May ’24n/a
€119.29
0%
12.97%€141.97€92.19n/a16
AnalystConsensusTarget
Consensus Narrative from 17 Analysts
€263.85
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.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/05/23 12:05
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