Ralph Lauren Corporation (RL) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-59.4%

$163.05

vs $401.83 price

Levered DCF

$176.64

After debt service

Piotroski score

9 / 9

Strong

Altman Z-score

6.33

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
P/E	21.26×	18.19×	18.95×	15.11×	13.63×	-74.04×	13.41×	24.24×
P/B	7.04×	5.22×	5×	3.25×	3.22×	3.45×	1.91×	3.18×
P/S	2.46×	1.91×	1.85×	1.23×	1.31×	2.04×	0.84×	1.66×
EV / EBITDA	14.88×	11.73×	13.61×	10.91×	9.35×	45.28×	11.02×	12.2×
Gross margin	69.9%	68.6%	66.8%	64.7%	66.7%	65.0%	59.3%	61.6%
Operating margin	14.5%	13.2%	11.4%	10.9%	12.8%	-1.0%	5.1%	8.9%
Net margin	11.6%	10.5%	9.7%	8.1%	9.7%	-2.8%	6.2%	6.8%
Current ratio	2.1×	1.78×	2.29×	2.23×	1.87×	2.66×	1.61×	3×
Debt / equity	1.05×	1.03×	1.51×	1.66×	1.34×	1.39×	1.2×	0.28×
Interest coverage	21.76×	21.14×	17.92×	17.43×	14.79×	-0.9×	18.01×	27.14×
Dividend yield	1.1%	1.5%	1.6%	2.5%	1.8%	0.6%	4.0%	1.8%
Payout ratio	23.0%	27.1%	30.1%	37.9%	25.0%	-41.1%	53.1%	44.3%

Key metrics by fiscal year

Metric	FY2026	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019
Return on equity	33.1%	28.7%	26.4%	21.5%	23.7%	-4.6%	14.3%	13.1%
Return on invested capital	19.6%	13.1%	11.6%	9.5%	10.2%	-0.7%	5.1%	8.7%
Return on assets	14.6%	10.5%	9.8%	7.7%	7.8%	-1.5%	5.3%	7.3%
Free cash flow yield	3.7%	7.5%	7.4%	2.4%	6.7%	3.0%	9.4%	5.6%
Earnings yield	4.7%	5.5%	5.3%	6.6%	7.3%	-1.3%	7.5%	4.1%
Enterprise value	$21B	$14.2B	$14.3B	$10.4B	$9.7B	$10B	$6.8B	$10.8B
Net debt / EBITDA	0.71×	0.61×	1.93×	2.62×	1.47×	4.71×	2.62×	0.38×
Cash conversion cycle (days)	118	116	125	145	125	143	96	128