Using the industry peer median P/E multiple (trailing + forward), Ralph Lauren Corporation (RL) has a fair value of $253.34 based on 5 comparable companies in the Apparel - Manufacturers industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Ralph Lauren CorporationRL | 21,644 | 29.1x | 20.8x |
| Smurfit Westrock PlcSW | 21,127 | 32.8x | 16.1x |
| Packaging Corporation of AmericaPKG | 19,102 | 24.7x | 21.4x |
| Amcor plcAMCR | 18,443 | 24.9x | 11.0x |
| NVR, Inc.NVR | 18,276 | 15.0x | 13.2x |
| Lululemon Athletica Inc.LULU | 17,912 | 11.5x | 11.7x |
| Industry Median | 24.7x | 13.2x | |
| (*) Profit after tax | 743 | 1,041 | |
| Equity Value | 18,382 | 14,045 | |
| (/) Outstanding shares | 64 | 64 | |
| Fair Price | $287 | $219 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.