Using the PEG framework with analyst consensus forward EPS growth of 16.2% plus 1.0% dividend yield, Ralph Lauren Corporation has a fair value of $264.11 based on NTM EPS (FY2026) of $16.27. The current PEG ratio is 1.28.
PEG < 1 = bargain, 1–1.5 = fair, > 2 = expensive.
PEG is most informative for high-growth companies — the PEG sweet spot.
| EPS Growth RateForward | 15.3% |
| Dividend Yield | +1.0% |
| Adjusted Growth (clamped 8–25%) | 16.2% |
| Fair P/E | 16.2x |
| NTM EPS (FY2026) | $16.27 |
| Fair Value | $264.11 |
| Period | EPS Est. | Growth | Analysts |
|---|---|---|---|
| FY2025 (actual) | $11.61 | — | — |
| FY2026E | $16.27 | +40.1% | 13 |
| FY2027E | $17.96 | +10.4% | 13 |
| FY2028E | $19.74 | +9.9% | 14 |
| FY2029E | $21.50 | +8.9% | 7 |
| FY2030E | $23.61 | +9.8% | 7 |
5Y Forward EPS CAGR: 15.3%
| 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%
The PEG Fair Value uses the Price/Earnings-to-Growth framework. A stock is fairly valued when its P/E ratio equals its earnings growth rate (PEG = 1.0). This model adds dividend yield to the growth rate per the original PEGY formula.
Growth rate priority: analyst consensus forward EPS CAGR (when ≥ 3 analysts cover the stock), falling back to historical EPS CAGR. Using EPS rather than net income avoids distortion from share buybacks. The growth rate is clamped between 8% and 25% — below 8% would undervalue stable earners, while above 25% would overvalue unsustainable spikes.