RL PE Ratio & Valuation,Is RL Overvalued

RL Relative Valuation

RL's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, RL is overvalued; if below, it's undervalued.

Historical Valuation

Ralph Lauren Corp (RL) is now in the Overvalued zone, suggesting that its current forward PE ratio of 23.08 is considered Overvalued compared with the five-year average of 15.34. The fair price of Ralph Lauren Corp (RL) is between 224.60 to 305.40 according to relative valuation methord. Compared to the current price of 365.07 USD , Ralph Lauren Corp is Overvalued By 19.54%.

Relative Value

Fair Zone

224.60-305.40

Current Price：365.07

19.54%

Overvalued

23.08

15.77

EV/EBITDA

Ralph Lauren Corp. (RL) has a current EV/EBITDA of 15.77. The 5-year average EV/EBITDA is 9.93. The thresholds are as follows: Strongly Undervalued below 5.60, Undervalued between 5.60 and 7.76, Fairly Valued between 12.09 and 7.76, Overvalued between 12.09 and 14.26, and Strongly Overvalued above 14.26. The current Forward EV/EBITDA of 15.77 falls within the Strongly Overvalued range.

19.01

EV/EBIT

Ralph Lauren Corp. (RL) has a current EV/EBIT of 19.01. The 5-year average EV/EBIT is 12.78. The thresholds are as follows: Strongly Undervalued below 7.68, Undervalued between 7.68 and 10.23, Fairly Valued between 15.33 and 10.23, Overvalued between 15.33 and 17.88, and Strongly Overvalued above 17.88. The current Forward EV/EBIT of 19.01 falls within the Strongly Overvalued range.

2.77

Ralph Lauren Corp. (RL) has a current PS of 2.77. The 5-year average PS is 1.54. The thresholds are as follows: Strongly Undervalued below 0.64, Undervalued between 0.64 and 1.09, Fairly Valued between 2.00 and 1.09, Overvalued between 2.00 and 2.45, and Strongly Overvalued above 2.45. The current Forward PS of 2.77 falls within the Strongly Overvalued range.

16.42

P/OCF

Ralph Lauren Corp. (RL) has a current P/OCF of 16.42. The 5-year average P/OCF is 15.34. The thresholds are as follows: Strongly Undervalued below 2.09, Undervalued between 2.09 and 8.72, Fairly Valued between 21.97 and 8.72, Overvalued between 21.97 and 28.60, and Strongly Overvalued above 28.60. The current Forward P/OCF of 16.42 falls within the Historic Trend Line -Fairly Valued range.

22.67

P/FCF

Ralph Lauren Corp. (RL) has a current P/FCF of 22.67. The 5-year average P/FCF is 25.09. The thresholds are as follows: Strongly Undervalued below -18.88, Undervalued between -18.88 and 3.10, Fairly Valued between 47.07 and 3.10, Overvalued between 47.07 and 69.06, and Strongly Overvalued above 69.06. The current Forward P/FCF of 22.67 falls within the Historic Trend Line -Fairly Valued range.

Ralph Lauren Corp (RL) has a current Price-to-Book (P/B) ratio of 8.52. Compared to its 3-year average P/B ratio of 4.90 , the current P/B ratio is approximately 73.87% higher. Relative to its 5-year average P/B ratio of 4.15, the current P/B ratio is about 105.31% higher. Ralph Lauren Corp (RL) has a Forward Free Cash Flow (FCF) yield of approximately 3.04%. Compared to its 3-year average FCF yield of 5.71%, the current FCF yield is approximately -46.78% lower. Relative to its 5-year average FCF yield of 5.61% , the current FCF yield is about -45.83% lower.

8.52

P/B

Median3y

4.90

Median5y

4.15

3.04

FCF Yield

Median3y

5.71

Median5y

5.61

Competitors Valuation Multiple

The average P/S ratio for RL's competitors is 2.36, providing a benchmark for relative valuation. Ralph Lauren Corp Corp (RL) exhibits a P/S ratio of 2.77, which is 17.04% above the industry average. Given its robust revenue growth of 16.49%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of RL increased by 44.55% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 8.57 to 10.32.

The secondary factor is the Revenue Growth, contributed 16.49%to the performance.

Overall, the performance of RL in the past 1 year is driven by Margin Expansion. Which is more sustainable.

16.49%

1.73B → 2.01B

Revenue Growth

20.42%

8.57 → 10.32

Margin Expansion

7.64%

24.88 → 26.78

P/E Change

44.55%

249.70 → 360.94

Mkt Cap Growth

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Frequently Asked Questions

Is Ralph Lauren Corp (RL) currently overvalued or undervalued?

What is Ralph Lauren Corp (RL) fair value?

RL's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Ralph Lauren Corp (RL) is between 224.60 to 305.40 according to relative valuation methord.

How does RL's valuation metrics compare to the industry average?

What is the current P/B ratio for Ralph Lauren Corp (RL) as of Jan 09 2026?

As of Jan 09 2026, Ralph Lauren Corp (RL) has a P/B ratio of 8.52. This indicates that the market values RL at 8.52 times its book value.

What is the current FCF Yield for Ralph Lauren Corp (RL) as of Jan 09 2026?

As of Jan 09 2026, Ralph Lauren Corp (RL) has a FCF Yield of 3.04%. This means that for every dollar of Ralph Lauren Corp’s market capitalization, the company generates 3.04 cents in free cash flow.

What is the current Forward P/E ratio for Ralph Lauren Corp (RL) as of Jan 09 2026?

As of Jan 09 2026, Ralph Lauren Corp (RL) has a Forward P/E ratio of 23.08. This means the market is willing to pay $23.08 for every dollar of Ralph Lauren Corp’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Ralph Lauren Corp (RL) as of Jan 09 2026?

As of Jan 09 2026, Ralph Lauren Corp (RL) has a Forward P/S ratio of 2.77. This means the market is valuing RL at $2.77 for every dollar of expected revenue over the next 12 months.

RL Valuation