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 22.70 is considered Overvalued compared with the five-year average of 15.28. The fair price of Ralph Lauren Corp (RL) is between 221.62 to 298.82 according to relative valuation methord. Compared to the current price of 356.97 USD , Ralph Lauren Corp is Overvalued By 19.46%.
Relative Value
Fair Zone
221.62-298.82
Current Price：356.97
19.46%
Overvalued
22.70
PE
1Y
3Y
5Y
Trailing
Forward
15.55
EV/EBITDA
Ralph Lauren Corp. (RL) has a current EV/EBITDA of 15.55. The 5-year average EV/EBITDA is 9.85. The thresholds are as follows: Strongly Undervalued below 5.78, Undervalued between 5.78 and 7.82, Fairly Valued between 11.89 and 7.82, Overvalued between 11.89 and 13.92, and Strongly Overvalued above 13.92. The current Forward EV/EBITDA of 15.55 falls within the Strongly Overvalued range.
18.75
EV/EBIT
Ralph Lauren Corp. (RL) has a current EV/EBIT of 18.75. The 5-year average EV/EBIT is 12.74. The thresholds are as follows: Strongly Undervalued below 7.81, Undervalued between 7.81 and 10.28, Fairly Valued between 15.20 and 10.28, Overvalued between 15.20 and 17.67, and Strongly Overvalued above 17.67. The current Forward EV/EBIT of 18.75 falls within the Strongly Overvalued range.
2.73
PS
Ralph Lauren Corp. (RL) has a current PS of 2.73. The 5-year average PS is 1.52. The thresholds are as follows: Strongly Undervalued below 0.67, Undervalued between 0.67 and 1.10, Fairly Valued between 1.95 and 1.10, Overvalued between 1.95 and 2.37, and Strongly Overvalued above 2.37. The current Forward PS of 2.73 falls within the Strongly Overvalued range.
16.55
P/OCF
Ralph Lauren Corp. (RL) has a current P/OCF of 16.55. The 5-year average P/OCF is 15.30. The thresholds are as follows: Strongly Undervalued below 2.05, Undervalued between 2.05 and 8.67, Fairly Valued between 21.93 and 8.67, Overvalued between 21.93 and 28.56, and Strongly Overvalued above 28.56. The current Forward P/OCF of 16.55 falls within the Historic Trend Line -Fairly Valued range.
22.64
P/FCF
Ralph Lauren Corp. (RL) has a current P/FCF of 22.64. The 5-year average P/FCF is 25.18. The thresholds are as follows: Strongly Undervalued below -18.92, Undervalued between -18.92 and 3.13, Fairly Valued between 47.23 and 3.13, Overvalued between 47.23 and 69.28, and Strongly Overvalued above 69.28. The current Forward P/FCF of 22.64 falls within the Historic Trend Line -Fairly Valued range.
Ralph Lauren Corp (RL) has a current Price-to-Book (P/B) ratio of 8.39. Compared to its 3-year average P/B ratio of 4.75 , the current P/B ratio is approximately 76.69% higher. Relative to its 5-year average P/B ratio of 4.06, the current P/B ratio is about 106.83% higher. Ralph Lauren Corp (RL) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 5.64%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 5.62% , the current FCF yield is about -100.00% lower.
8.39
P/B
Median3y
4.75
Median5y
4.06
3.07
FCF Yield
Median3y
5.64
Median5y
5.62
Competitors Valuation Multiple
The average P/S ratio for RL's competitors is , providing a benchmark for relative valuation. Ralph Lauren Corp Corp (RL) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 16.49%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of RL increased by 54.55% 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 P/E Change, contributed 17.64%to the performance.
Overall, the performance of RL in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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