Ralph Lauren Corporation

Consumer CyclicalApparel - ManufacturersNYSE

$353.55

Market Cap: $21.44B

Ralph Lauren Corporation (RL) Valuation Summary

Updated May 9, 2026 07:49

Model	Range	Fair Value	Upside
▸ Discounted Cash Flow
Growth Exit 5Y	$137.56 – $885.92	$238.89	-32.4%
Growth Exit 10Y	$164.80 – $1,025.97	$282.20	-20.2%
EBITDA Exit 5Y	$224.88 – $401.42	$306.03	-13.4%
EBITDA Exit 10Y	$243.94 – $486.57	$348.11	-1.5%
▸ Trading Multiples
P/E	$289.69 – $371.68	$305.99	-13.4%
EV/EBITDA	$156.15 – $389.64	$359.85	+1.8%
EV/Revenue	$141.57 – $228.82	$227.52	-35.6%
▸ PEG
PEG Fair Value	$336.89 – $336.89	$336.89	-4.7%
▸ Earnings Power Value
Earnings Power Value	$97.05 – $150.42	$118.48	-66.5%
▸ Dividend Discount
Dividend Discount	$69.85 – $185.63	$108.11	-69.4%

Valuation History

DCF Analysis

Fair Value

$238.89

Market Price

$353.55

Upside / Downside

-32.4%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Ralph Lauren Corporation's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 12.6% to 5.1% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 35, DPO 70, DIO 166). At a 7.6% WACC with mid-year discounting, the terminal value (84% of enterprise value) is derived from the Gordon Growth Model on Year 6 FCFF at a 3.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $238.89 per share, suggesting RL is overvalued by 32.4% at the current price of $353.55.

FCFF Present Value Calculation

WACC

7.61%

3% – 20%

Terminal Growth

3.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	841	890	929	990	1,040	1,077
(−) Net Interest	61	65	68	72	76	79
(+) D&A	175	198	212	218	238	246
EBITDA	1,077	1,153	1,209	1,280	1,354	1,402

(−) Tax	176	186	194	207	218	225
(−) CapEx	224	237	247	264	277	287
(−) ΔWC	344	86	68	106	89	92
Free Cash Flow (FCFF)	333	644	699	704	771	798

Terminal Value						19,416
WACC / Discount Rate	7.6%
Long-term Growth Rate	3.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	321	577	582	544	554	13,456

Enterprise Value	16,035
Projection Period	2,579	16.1%
Terminal Value	13,456	83.9%

(−) Current Net Debt	746

Equity Value	15,289
(/) Outstanding Shares	64

Fair Price	$238.89

Sensitivity Analysis

WACC \ Terminal Growth Rate	2.5%	3.0%	3.5%	4.0%	4.5%
5.6%	$336	$394	$481	$620	$886
6.6%	$250	$280	$321	$377	$459
7.6%	$198	$216	$239	$268	$307
8.6%	$163	$175	$189	$207	$228
9.6%	$138	$146	$156	$167	$181

Current price: $353.55. Green = undervalued, Red = overvalued.

Fair Value

$282.20

Market Price

$353.55

Upside / Downside

-20.2%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Ralph Lauren Corporation's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 12.6% to 4.6% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 35, DPO 70, DIO 166). At a 7.6% WACC with mid-year discounting, the terminal value (72% of enterprise value) is derived from the Gordon Growth Model on Year 11 FCFF at a 3.5% perpetual rate. After subtracting net debt, the equity value implies a fair price of $282.20 per share, suggesting RL is overvalued by 20.2% at the current price of $353.55.

FCFF Present Value Calculation

WACC

7.61%

3% – 20%

Terminal Growth

3.50%

0% – 6%

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	841	890	929	990	1,040	1,155	1,264	1,362	1,447	1,514	1,567
(−) Net Interest	61	65	68	72	76	84	92	100	106	111	115
(+) D&A	175	198	212	218	238	250	267	286	310	334	346
EBITDA	1,077	1,153	1,209	1,280	1,354	1,489	1,623	1,748	1,862	1,958	2,027

(−) Tax	176	186	194	207	218	242	264	285	303	317	328
(−) CapEx	224	237	247	264	277	308	337	363	385	403	417
(−) ΔWC	344	86	68	106	89	200	190	172	148	116	120
Free Cash Flow (FCFF)	333	644	699	704	771	740	832	928	1,027	1,122	1,161

Terminal Value											28,259
WACC / Discount Rate	7.6%
Long-term Growth Rate	3.5%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	321	577	582	544	554	494	516	536	550	559	13,572

Enterprise Value	18,806
Projection Period	5,234	27.8%
Terminal Value	13,572	72.2%

(−) Current Net Debt	746

Equity Value	18,061
(/) Outstanding Shares	64

Fair Price	$282.20

Sensitivity Analysis

WACC \ Terminal Growth Rate	2.5%	3.0%	3.5%	4.0%	4.5%
5.6%	$417	$481	$577	$732	$1026
6.6%	$307	$339	$382	$441	$528
7.6%	$241	$259	$282	$312	$350
8.6%	$196	$208	$222	$239	$260
9.6%	$165	$173	$181	$192	$205

Current price: $353.55. Green = undervalued, Red = overvalued.

Fair Value

$306.09

Market Price

$353.55

Upside / Downside

-13.4%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Ralph Lauren Corporation's cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 12.6% to 5.1% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 35, DPO 70, DIO 166). At a 7.6% WACC with mid-year discounting, the terminal value (87% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 18.5x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $306.03 per share, suggesting RL is fairly valued by 13.4% at the current price of $353.55.

FCFF Present Value Calculation

WACC

7.61%

3% – 20%

EV/EBITDA Exit Multiple

18.46x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	Terminal
Profit Before Tax	841	890	929	990	1,040	1,066
(−) Net Interest	61	65	68	72	76	78
(+) D&A	175	198	212	218	238	244
EBITDA	1,077	1,153	1,209	1,280	1,354	1,388

(−) Tax	176	186	194	207	218	—
(−) CapEx	224	237	247	264	277	—
(−) ΔWC	344	86	68	106	89	—
Free Cash Flow (FCF)	333	644	699	704	771	—

Peers' EBITDA Multiple						18.5x
Terminal Value						25,622
WACC / Discount Rate	7.61%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5
Present Value of FCF	321	577	582	544	554	17,756

Enterprise Value	20,335
Projection Period	2,579	12.7%
Terminal Value	17,756	87.3%

(−) Current Net Debt	746
Equity Value	19,590
(÷) Outstanding Shares	64M
Fair Price	$306	-13.4%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	14.5x	16.5x	18.5x	20.5x	22.5x
5.6%	$269	$302	$335	$368	$401
6.6%	$257	$289	$320	$352	$383
7.6%	$246	$276	$306	$336	$366
8.6%	$235	$264	$293	$321	$350
9.6%	$225	$252	$280	$307	$335

Current price: $353.55. Green = undervalued, Red = overvalued.

Based on default parameters

Fair Value

$348.17

Market Price

$353.55

Upside / Downside

-1.5%

Verdict

Overvalued

Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Ralph Lauren Corporation's cash flows over 10 years with analyst estimates for the first 3–5 years, fading toward long-term GDP growth for the remaining years with line-by-line expense modeling. Revenue is projected revenue growing from 12.6% to 4.6% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 35, DPO 70, DIO 166). At a 7.6% WACC with mid-year discounting, the terminal value (77% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 18.5x to Year 11 EBITDA. After subtracting net debt, the equity value implies a fair price of $348.11 per share, suggesting RL is fairly valued by 1.5% at the current price of $353.55.

FCFF Present Value Calculation

WACC

7.61%

3% – 20%

EV/EBITDA Exit Multiple

18.46x

1x – 40x

Forecast Period

5 Yrs

+ Terminal Year

Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.

Currency: USD Millions

	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Profit Before Tax	841	890	929	990	1,040	1,155	1,264	1,362	1,447	1,514	1,551
(−) Net Interest	61	65	68	72	76	84	92	100	106	111	113
(+) D&A	175	198	212	218	238	250	267	286	310	334	342
EBITDA	1,077	1,153	1,209	1,280	1,354	1,489	1,623	1,748	1,862	1,958	2,007

(−) Tax	176	186	194	207	218	242	264	285	303	317	—
(−) CapEx	224	237	247	264	277	308	337	363	385	403	—
(−) ΔWC	344	86	68	106	89	200	190	172	148	116	—
Free Cash Flow (FCF)	333	644	699	704	771	740	832	928	1,027	1,122	—

Peers' EBITDA Multiple											18.5x
Terminal Value											37,050
WACC / Discount Rate	7.61%

Timing of FCF (mid year)	0.5	1.5	2.5	3.5	4.5	5.5	6.5	7.5	8.5	9.5	5
Present Value of FCF	321	577	582	544	554	494	516	536	550	559	17,794

Enterprise Value	23,028
Projection Period	5,234	22.7%
Terminal Value	17,794	77.3%

(−) Current Net Debt	746
Equity Value	22,283
(÷) Outstanding Shares	64M
Fair Price	$348	-1.5%

Sensitivity Analysis

WACC \ EV/EBITDA Exit Multiple	14.5x	16.5x	18.5x	20.5x	22.5x
5.6%	$341	$378	$414	$450	$487
6.6%	$313	$346	$379	$412	$446
7.6%	$288	$318	$348	$378	$408
8.6%	$265	$292	$320	$347	$375
9.6%	$244	$269	$294	$319	$344

Current price: $353.55. Green = undervalued, Red = overvalued.

Based on default parameters

Trading Multiples

Fair Value

$305.99

Market Price

$353.55

Upside / Downside

-13.4%

Verdict

Overvalued

Using the industry peer median P/E Multiples multiple (trailing + forward), Ralph Lauren Corporation (RL) has a fair value of $305.99 based on 8 comparable companies in the Apparel - Manufacturers industry.

P/E Valuation — Apparel - Manufacturers

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing P/E	Forward P/E
Ralph Lauren CorporationRL	22,627	30.5x	21.7x
Casey's General Stores, Inc.CASY	31,859	58.7x	47.5x
InterContinental Hotels Group PLCIHG	22,311	30.7x	26.4x
Smurfit Westrock PlcSW	21,833	31.3x	17.4x
Packaging Corporation of AmericaPKG	19,933	26.0x	22.5x
Burlington Stores, Inc.BURL	19,132	32.0x	31.1x
Amcor plcAMCR	18,449	25.0x	11.0x
NVR, Inc.NVR	16,596	13.7x	12.0x
Lululemon Athletica Inc.LULU	15,389	9.9x	10.1x
Industry Median		28.4x	19.9x
(*) Profit after tax		743	1,042
Equity Value		21,085	18,082
(/) Outstanding shares		64	64
Fair Price		$329	$283

Selected Fair Value (avg of trailing + forward)

$305.99

-13.4%

Fair Value

$359.85

Market Price

$353.55

Upside / Downside

+1.8%

Verdict

Undervalued

Using the industry peer median EV/EBITDA multiple (trailing + forward), Ralph Lauren Corporation (RL) has a fair value of $359.85 based on 9 comparable companies in the Apparel - Manufacturers industry.

EV/EBITDA Valuation — Apparel - Manufacturers

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/EBITDA	Forward EV/EBITDA
Ralph Lauren CorporationRL	22,627	19.2x	17.1x
Casey's General Stores, Inc.CASY	31,859	28.7x	26.6x
InterContinental Hotels Group PLCIHG	22,311	21.1x	19.9x
Smurfit Westrock PlcSW	21,833	7.3x	7.1x
Packaging Corporation of AmericaPKG	19,933	13.5x	13.4x
Burlington Stores, Inc.BURL	19,132	18.9x	19.0x
Amcor plcAMCR	18,449	18.5x	18.4x
NVR, Inc.NVR	16,596	8.8x	8.7x
Lululemon Athletica Inc.LULU	15,389	5.6x	5.7x
Genuine Parts CompanyGPC	14,569	29.7x	29.7x
Industry Median		18.5x	18.4x
(*) EBITDA		1,214	1,367
= Enterprise Value		22,413	25,139
(-) Net Debt		746	746
Equity Value		21,668	24,393
(/) Outstanding shares		64	64
Fair Price		$339	$381

Selected Fair Value (avg of trailing + forward)

$359.85

+1.8%

Fair Value

$227.52

Market Price

$353.55

Upside / Downside

-35.6%

Verdict

Overvalued

Using the industry peer median EV/Revenue multiple (trailing + forward), Ralph Lauren Corporation (RL) has a fair value of $227.52 based on 9 comparable companies in the Apparel - Manufacturers industry.

EV/Revenue Valuation — Apparel - Manufacturers

USD in millions except Fair Price. Subject company highlighted.

	Mkt Cap ($M)	Trailing EV/Revenue	Forward EV/Revenue
Ralph Lauren CorporationRL	22,627	3.3x	2.9x
Casey's General Stores, Inc.CASY	31,859	2.2x	2.0x
InterContinental Hotels Group PLCIHG	22,311	5.0x	4.7x
Smurfit Westrock PlcSW	21,833	1.1x	1.1x
Packaging Corporation of AmericaPKG	19,933	2.6x	2.6x
Burlington Stores, Inc.BURL	19,132	2.1x	2.1x
Amcor plcAMCR	18,449	2.2x	2.2x
NVR, Inc.NVR	16,596	1.5x	1.5x
Lululemon Athletica Inc.LULU	15,389	1.4x	1.4x
Genuine Parts CompanyGPC	14,569	0.9x	0.9x
Industry Median		2.1x	2.0x
(*) Revenue		7,079	7,971
= Enterprise Value		14,630	15,983
(-) Net Debt		746	746
Equity Value		13,884	15,238
(/) Outstanding shares		64	64
Fair Price		$217	$238

Selected Fair Value (avg of trailing + forward)

$227.52

-35.6%

PEG Fair Value

Fair Value

$336.89

Market Price

$353.55

Upside / Downside

-4.7%

Verdict

Overvalued

Using the PEG framework with analyst consensus forward EPS growth of 20.7% plus 0.9% dividend yield, the company has a fair value of $336.89 based on NTM EPS (FY2026) of $16.28. The current PEG ratio is 1.05.

PEG Ratio

1.05Fair Value

01.02.03.0+

PEG = P/E ÷ (Growth + Yield) = 21.7 ÷ (19.8% + 0.9%) = 1.05

PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.

Growth Category: Fast GrowerPEG highly applicable

PEG is most informative for high-growth companies — the PEG sweet spot.

Fair Value Calculation

EPS Growth RateForward	19.8%
Dividend Yield	+0.9%
Adjusted Growth (clamped 8–25%)	20.7%
Fair P/E	20.7x
NTM EPS (FY2026)	$16.28
Fair Value	$336.89

Growth Analysis

Forward GrowthActive

Period	EPS Est.	Growth	Analysts
FY2025 (actual)	$11.61	—	—
FY2026E	$16.28	+40.2%	13
FY2027E	$18.01	+10.6%	13
FY2028E	$19.94	+10.7%	14

3Y Forward EPS CAGR: 19.8%

Historical Growth

Year	Net Income	EPS	YoY
FY2021	$-121.1M	$-1.65	—
FY2022	$600.1M	$8.08	—
FY2023	$522.7M	$7.58	-6.2%
FY2024	$646.3M	$9.72	+28.2%
FY2025	$742.9M	$11.61	+19.4%

4Y Historical EPS CAGR: 13.8%

Earnings Power Value

Fair Value

$118.48

Market Price

$353.55

Upside / Downside

-66.5%

Verdict

Overvalued

Using the Earnings Power Value framework with a WACC of 7.6% and normalized earnings of $633.7M, the company has a fair value of $118.48 per share. The EPV range is $97.05 – $150.42 based on WACC sensitivity (6.1% – 9.1%).

Currency: USD Millions

	Low	Selected	High
Normalized Earnings	634	634	634
(/) WACC	9.1%	7.6%	6.1%
Enterprise Value	6,957	8,328	10,373
(-) Net debt	746	746	746
Equity Value	6,211	7,582	9,627
(/) Outstanding shares	64	64	64
Fair Price	$97.05	$118.48	$150.42

Dividend Discount Model

Fair Value

$108.11

Market Price

$353.55

Upside / Downside

-69.4%

Verdict

Overvalued

Using the Two-Stage Dividend Discount Model with a Cost of Equity of 8.4% and projected dividend growth of 15.0%, the fair value is $108.11 per share. The DDM range is $69.85 – $185.63 based on sensitivity analysis across Cost of Equity and growth rate assumptions.

Dividend Profile

Current DPS

$3.14

Dividend Yield

0.94%

Payout Ratio

27.1%

Dividend Coverage

3.69x

FCF Payout Ratio19.7%

DPS CAGR (4Y)46.7%

Historical Dividends Per Share

Year	DPS	Payout Ratio	YoY Growth
2025	$3.14	27.1%	+7.4%
2024	$2.93	30.1%	+1.8%
2023	$2.87	37.9%	+42.4%
2022	$2.02	25.0%	+198.0%
2021	$0.68	—	—

Dividend Projections (5-Year)

Year	Projected DPS	Growth	Discount Factor	Present Value
2026	$3.61	15.0%	0.9225	$3.33
2027	$4.16	15.0%	0.8511	$3.54
2028	$4.78	15.0%	0.7852	$3.75
2029	$5.50	15.0%	0.7243	$3.98
2030	$6.32	15.0%	0.6682	$4.22
Terminal Value	$6.54 DPS	3.5%		$89.28

PV of Projected Dividends$18.83

PV of Terminal Value$89.28

Fair Value per Share$108.11

Sensitivity Analysis

Fair value under different Cost of Equity (rows) and DPS Growth Rate (columns) assumptions.

Ke \ Growth	13.0%	14.0%	15.0%	15.0%	15.0%
6.4%	$171	$178	$186	$186	$186
7.4%	$126	$131	$137	$137	$137
8.4%	$100	$104	$108	$108	$108
9.4%	$82	$86	$89	$89	$89
10.4%	$70	$73	$76	$76	$76

Disclaimer: Sweet Value Lab provides estimated intrinsic values for informational purposes only. This is not financial advice. All models rely on assumptions that may not reflect future performance. Always do your own research before making investment decisions.