Ralph Lauren (RL): Is the New TOPA Collaboration Reflected in the Brand's Current Valuation?

Ralph Lauren (NYSE:RL) just introduced its fourth Artist in Residence collaboration, launching the Polo Ralph Lauren x TOPA collection as part of the Fall/Holiday 2025 lineup. This project teams up with Indigenous-led brand TOPA and puts a spotlight on cultural collaboration and charitable support, an interesting angle for anyone tracking the brand’s evolving story.

See our latest analysis for Ralph Lauren.

Ralph Lauren’s share price has enjoyed remarkable momentum lately, climbing 14.5% in the last month and up 58% so far this year. With the 12-month total shareholder return nearing 60% and a stellar 316% over five years, investors are taking notice of both the brand’s evolving collaborations and its strong track record.

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With shares at record highs and investor excitement mounting, the big question is whether Ralph Lauren is undervalued with more room to run, or if the market has already factored in the brand’s future growth story.

Most Popular Narrative: 20% Undervalued

Compared to the last close price of $365.88, the most widely followed narrative pegs Ralph Lauren’s fair value at $366.75, suggesting the market may be catching up to healthy future growth assumptions. Setting the stage, a closer look reveals what is fueling confidence in the company’s next chapter.

Significant investments in technology, AI-driven inventory management, and automated supply chain operations are driving greater operating efficiencies, setting the stage for improved operating margins and inventory turns as scale increases.

Read the complete narrative.

Unlock the financial puzzle behind this impressive fair value. One bold forecast is baking in major margin expansion and next-level efficiency, a formula that could reset expectations for Ralph Lauren’s future. Curious which assumptions drive this edge? Dig deeper to find the real numbers fueling this optimistic view.

Result: Fair Value of $366.75 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, risks remain, including ongoing macroeconomic uncertainty and potential slowdowns in European growth. Both of these factors could challenge Ralph Lauren’s upbeat outlook.

Find out about the key risks to this Ralph Lauren narrative.

Another View: Multiples Tell a Different Story

Looking at Ralph Lauren’s valuation compared to its peers, the company trades at a price-to-earnings ratio of 26x, higher than both the US Luxury industry average of 21.4x and the “fair ratio” of 20x. This gap may signal increased valuation risk, even as peer averages run much higher at 44.8x. Which direction will the market move next?

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Ralph Lauren Narrative

If you have a different perspective or want to dig into the details yourself, you can build your own story around Ralph Lauren in just a few minutes. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Ralph Lauren.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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