We’ve recently updated our valuation analysis.

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

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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/Revenue1.4x
Enterprise Value/EBITDA9.1x
PEG Ratio1.4x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average11.6x
CPRI Capri Holdings
8.7x3.7%US$7.2b
LEVI Levi Strauss
11.2x9.8%US$6.4b
TPR Tapestry
10.9x9.4%US$9.0b
COLM Columbia Sportswear
15.8x9.7%US$5.4b
RL Ralph Lauren
14.4x10.5%US$7.4b

Price-To-Earnings vs Peers: RL is expensive based on its Price-To-Earnings Ratio (14.4x) compared to the peer average (11.6x).


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/a15.8%
n/an/an/a

Price-To-Earnings vs Industry: RL is expensive based on its Price-To-Earnings Ratio (14.4x) compared to the US Luxury industry average (10.4x)


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 Ratio14.4x
Fair PE Ratio11.3x

Price-To-Earnings vs Fair Ratio: RL is expensive based on its Price-To-Earnings Ratio (14.4x) compared to the estimated Fair Price-To-Earnings Ratio (11.3x).


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 ($112.66) is trading below our estimate of fair value ($161.62)

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


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$112.66
US$114.91
+2.0%
16.0%US$145.00US$82.00n/a18
Nov ’23US$93.51
US$114.46
+22.4%
16.4%US$145.00US$82.00n/a18
Oct ’23US$84.93
US$114.68
+35.0%
16.5%US$145.00US$82.00n/a18
Sep ’23US$90.05
US$112.88
+25.3%
15.3%US$140.00US$79.00n/a17
Aug ’23US$97.94
US$116.77
+19.2%
17.1%US$145.00US$78.00n/a18
Jul ’23US$90.70
US$119.88
+32.2%
18.4%US$162.00US$85.00n/a18
Jun ’23US$101.19
US$120.58
+19.2%
18.2%US$162.00US$85.00n/a18
May ’23US$104.34
US$139.08
+33.3%
15.4%US$171.00US$98.00n/a19
Apr ’23US$112.00
US$141.99
+26.8%
12.9%US$171.00US$114.00n/a19
Mar ’23US$124.70
US$142.95
+14.6%
12.3%US$171.00US$114.00n/a20
Feb ’23US$113.51
US$136.15
+19.9%
12.5%US$168.00US$110.00n/a20
Jan ’23US$118.86
US$137.30
+15.5%
13.2%US$179.00US$110.00n/a20
Dec ’22US$116.45
US$138.15
+18.6%
12.5%US$179.00US$108.00n/a19
Nov ’22US$129.75
US$139.63
+7.6%
12.2%US$179.00US$108.00US$93.5119
Oct ’22US$114.79
US$141.33
+23.1%
11.9%US$179.00US$108.00US$84.9318
Sep ’22US$118.94
US$142.11
+19.5%
11.6%US$179.00US$108.00US$90.0518
Aug ’22US$113.52
US$134.60
+18.6%
15.0%US$172.00US$99.00US$97.9418
Jul ’22US$118.03
US$134.32
+13.8%
14.9%US$172.00US$99.00US$90.7018
Jun ’22US$124.92
US$133.75
+7.1%
15.1%US$172.00US$99.00US$101.1918
May ’22US$133.29
US$125.19
-6.1%
15.6%US$152.00US$92.00US$104.3418
Apr ’22US$119.94
US$121.18
+1.0%
13.7%US$145.00US$92.00US$112.0019
Mar ’22US$120.34
US$119.00
-1.1%
13.4%US$145.00US$92.00US$124.7018
Feb ’22US$102.48
US$115.74
+12.9%
17.2%US$145.00US$72.00US$113.5119
Jan ’22US$103.74
US$97.42
-6.1%
24.1%US$145.00US$72.00US$118.8619
Dec ’21US$88.62
US$85.11
-4.0%
20.5%US$145.00US$62.00US$116.4519
Nov ’21US$66.85
US$85.11
+27.3%
20.5%US$145.00US$62.00US$129.7519

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


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