Ralph Lauren Valuation

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

Below Fair Value: RL ($186.5) is trading below our estimate of fair value ($228.55)

Significantly Below Fair Value: RL 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 RL?

Other financial metrics that can be useful for relative valuation.

RL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.9x
Enterprise Value/EBITDA13.1x
PEG Ratio2.3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.8x
TPR Tapestry
11.5x7.7%US$10.7b
LEVI Levi Strauss
30.9x26.5%US$7.7b
PVH PVH
15.7x11.3%US$8.3b
CPRI Capri Holdings
25.2x24.5%US$5.3b
RL Ralph Lauren
20.3x8.7%US$11.9b

Price-To-Earnings vs Peers: RL is good value based on its Price-To-Earnings Ratio (20.3x) compared to the peer average (20.8x).


Price to Earnings Ratio vs Industry

How does RL's PE Ratio compare vs other companies in the US Luxury Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: RL is expensive based on its Price-To-Earnings Ratio (20.3x) compared to the US Luxury industry average (17.5x).


Price to Earnings Ratio vs Fair Ratio

What is RL'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.

RL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.3x
Fair PE Ratio18x

Price-To-Earnings vs Fair Ratio: RL is expensive based on its Price-To-Earnings Ratio (20.3x) compared to the estimated Fair Price-To-Earnings Ratio (18x).


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 RL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$186.50
US$185.70
-0.4%
16.2%US$244.00US$113.00n/a20
Mar ’25US$184.99
US$184.45
-0.3%
16.6%US$244.00US$113.00n/a20
Feb ’25US$146.36
US$150.42
+2.8%
14.9%US$189.00US$100.00n/a20
Jan ’25US$144.20
US$141.93
-1.6%
12.4%US$170.00US$100.00n/a19
Dec ’24US$133.63
US$138.09
+3.3%
13.3%US$170.00US$100.00n/a19
Nov ’24US$111.45
US$136.09
+22.1%
12.8%US$166.00US$100.00n/a18
Oct ’24US$116.09
US$137.45
+18.4%
13.1%US$166.00US$100.00n/a18
Sep ’24US$118.33
US$136.26
+15.1%
13.5%US$169.00US$100.00n/a16
Aug ’24US$131.80
US$134.82
+2.3%
14.3%US$169.00US$100.00n/a16
Jul ’24US$123.30
US$132.32
+7.3%
13.3%US$168.00US$100.00n/a16
Jun ’24US$106.09
US$131.27
+23.7%
13.5%US$168.00US$100.00n/a15
May ’24US$113.70
US$129.09
+13.5%
13.4%US$154.00US$100.00n/a15
Apr ’24US$116.67
US$129.09
+10.6%
13.4%US$154.00US$100.00n/a15
Mar ’24US$116.88
US$131.02
+12.1%
12.8%US$157.00US$100.00US$184.9918
Feb ’24US$127.73
US$122.52
-4.1%
16.3%US$157.00US$90.00US$146.3618
Jan ’24US$105.67
US$116.36
+10.1%
16.3%US$148.00US$90.00US$144.2018
Dec ’23US$113.88
US$115.02
+1.0%
16.1%US$145.00US$82.00US$133.6318
Nov ’23US$93.51
US$114.46
+22.4%
16.4%US$145.00US$82.00US$111.4518
Oct ’23US$84.93
US$114.68
+35.0%
16.5%US$145.00US$82.00US$116.0918
Sep ’23US$90.05
US$112.88
+25.3%
15.3%US$140.00US$79.00US$118.3317
Aug ’23US$97.94
US$116.77
+19.2%
17.1%US$145.00US$78.00US$131.8018
Jul ’23US$90.70
US$119.88
+32.2%
18.4%US$162.00US$85.00US$123.3018
Jun ’23US$101.19
US$120.58
+19.2%
18.2%US$162.00US$85.00US$106.0918
May ’23US$104.34
US$139.08
+33.3%
15.4%US$171.00US$98.00US$113.7019
Apr ’23US$112.00
US$141.99
+26.8%
12.9%US$171.00US$114.00US$116.6719
Mar ’23US$124.70
US$142.95
+14.6%
12.3%US$171.00US$114.00US$116.8820

Analyst Forecast: Target price is lower than the current share price.


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