Ralph Lauren Corp Class A (RL) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Ralph Lauren Corp Class A stock $225, price $382, that is 41.1% below the price, quality 83 out of 100. Rating: strongly overvalued. Calculated from audited financials with 25 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 3, 2026.
How to read this chart
60‑month range $77.72 – $412.07 · fair‑value band $154.19 – $313.14 · the $381.78 price screens above the $225.03 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 3, 2026.
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Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally.
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The company offers apparel, including a range of men's, women's, and children's clothing; footwear and accessories, which comprise casual shoes, dress shoes, boots, sneakers, sandals, eyewear, watches, fashion and fine jewelry, scarves, hats, gloves, and umbrellas, as well as leather goods comprising handbags, luggage, small leather goods, and belts; home products, such as bed and bath lines, furniture, fabric and wall coverings, lighting, dining, floor coverings, decorative accessories, and giftware; and fragrances.
The company sells apparel and accessories under the Ralph Lauren Collection, Ralph Lauren Purple Label, Polo Ralph Lauren, Double RL, Lauren Ralph Lauren, RLX Ralph Lauren, Polo Ralph Lauren Children, and Chaps brands; women's fragrances under the Ralph Lauren Collection, Woman by Ralph Lauren, Romance Collection, and Ralph Collection brand names; and men's fragrances under the Ralph's Club, Purple Label, Polo Blue, Polo Red, Polo Green, Polo Black, Polo 67, Safari, Polo Sport, and Big Pony Men's brand names.
Its restaurant collection includes The Polo Bar in New York City; RL Restaurant in Chicago; Ralph's in Paris; The Bar at Ralph Lauren located in Milan; Ralph's Bar located in Chengdu, China; and Ralph's Coffee concept.
The company sells its products to department stores, specialty stores, and golf and pro shops, as well as directly to consumers through its retail stores, concession-based shop-within-shops, and its digital commerce sites.
It operates retail stores and concession-based shop-within-shops; and operates Ralph Lauren stores and shops through licensing partners. Ralph Lauren Corporation was founded in 1967 and is based in New York, New York.
Stock analysis
Ralph Lauren Corp Class A (RL) currently trades at $381.78, while our model-based Fair Value estimate is $225.03, 41% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of $272.12 per share, and 0 of the 25 models we run sit above the $381.78 price.
Bear case: the Dividend Discount group reads lowest at $42.40, and 25 of the 25 models stay below the price. Data coverage for this calculation is high.
Scenario range: $154.19 (bear) to $313.14 (bull), the price of $381.78 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 83/100 (high quality), in the Consumer Cyclical sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Ralph Lauren Corp Class A reported revenue of $8.1B in FY2026 versus $6.2B in FY2022, a compound +6.9%/yr. Reported net income was $941M in FY2026, compounding +11.9%/yr from FY2022.
Key figures
Market cap $23.8B Large · P/E ratio 23.8 · P/S ratio 2.85 · EPS (TTM) $15.87 · Dividend yield 1.0% · Net margin 11.8% · Return on equity 37.5% · Return on assets (EBIT) 12.7%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 74 out of 100 (medium confidence).
What moves the price
The share trades about 7% below its 52-week high and 22% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at 10% fair-value upside, at −41%, RL screens richer than that median.
Fair Value models
Bear$154.19Fair Value $225.03Bull$313.14
Price $381.78 · Downside -41.1%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then ($7.31 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
SalePatrice LouvetPresident and CEO, Director47,000 shares at $354.22$16.6MFeb 10, 202610b5-1 plan
Plus 38 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.98/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+14.6%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.0%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.0%
Start year 2021 (pandemic). Over 10 years: +0.9% a year
Revenue growth 29 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.9%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
+18.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year+17.4%
Dividend (yield on the price)1.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.18.3% vs 9.2%, picking up
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−1% → 15%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+18.9%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+5.0%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +16.1% a year for the price and +2.6% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (99 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Hype
Recent news coverage is unusually upbeat, far more positive than stocks are typically covered.
AI conclusion: The business draws strength from brand-driven pricing power visible in fast-growing categories yet remains limited by thin public evidence on other sources of competitive advantage.
Main risk: Platforms such as Shein and direct-to-consumer digital brands could capture customers in the accessible luxury segment and force Ralph Lauren to lower prices or increase discounts, squeezing margins on apparel.
Bull case: Ralph Lauren could deepen its direct-to-consumer channels and use its AI styling tools to strengthen brand loyalty and reduce reliance on wholesale partners while differentiating from fast fashion through elevated product quality.
Bear case: If fast fashion and digital competitors continue gaining share while key wholesale customers consolidate or struggle, Ralph Lauren might face sustained margin pressure and slower growth in its core apparel categories.
Ralph Lauren is seeing outsized growth in outerwear and handbags, which expanded more than 20 percent in the latest quarter compared with 13 percent overall revenue growth. Management describes these as early-stage opportunities within a broader brand elevation push that also lifts average selling prices. Our models currently see the stock as overvalued. Will the momentum in these categories prove durable enough to justify the valuation or will it prove temporary once comparisons normalize?
Compare Ralph Lauren Corp Class A with another stock
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Apparel Manufacturing · 213 stocks
Beats the industry median on 6/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score83 · Top 25%
Fair Value upside−41.1% · Below median
Profitability
Return on equity (12 months)37.5% · Top 25%
Return on assets14.6% · Top 25%
Net margin (12 months)11.8% · Top 25%
Operating margin (12 months)18.4% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)14.0% · Top 25%
Dividend yield (12 months)1.0% · Bottom 25%
Balance sheet
Debt / equity0.44× · Highest 25%
Valuation Multiplesvs Apparel Manufacturing median · lower = cheaper
P/E (12 months)23.8× · Pricier than median
P/B8.37× · Priciest 25%
P/S (12 months)2.85× · Priciest 25%
Price / free cash flow31.9× · Priciest 25%
EV/EBITDA14.5× · Priciest 25%
PEG1.86× · Pricier than median
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 43
FUTURE (revenue growth)70· sector 16
PAST (return on equity)100· sector 22
HEALTH (low debt)78· sector 98
DIVIDEND (yield)20· sector 63
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Ralph Lauren Corp Class A Fair Value". https://www.fairvalue-calculator.com/stock/RL
Frequently asked questions
Is Ralph Lauren Corp Class A (RL) overvalued or undervalued?
As of Nov 3, 2026, our model estimates a fair value of $225.03 versus a price of $381.78, about 41% lower (overvalued).
What is the fair value of RL?
Our model-based fair value for Ralph Lauren Corp Class A is $225.03 (as of Nov 3, 2026), built from audited fundamentals. The current price: $381.78.
What is the quality score of RL?
Ralph Lauren Corp Class A has a Quality Score of 83/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Ralph Lauren Corp Class A (RL)?
Our model-based price target is the fair value of $225.03 (as of Nov 3, 2026) from 25 valuation models. Cautious scenario $154.19, optimistic scenario $313.14. It is a calculation from audited fundamentals, not an analyst target.
What is the Ralph Lauren Corp Class A stock forecast for 2026?
Our models put fair value at $225.03, about 41% lower versus a price of $381.78 (overvalued). Cautious scenario $154.19, optimistic scenario $313.14. The calculation is refreshed regularly with new filings.
What is the revenue of Ralph Lauren Corp Class A (RL)?
Ralph Lauren Corp Class A reported trailing-twelve-month revenue of about $8.4B (latest available figure, as of Nov 3, 2026).
Does Ralph Lauren Corp Class A pay a dividend?
Ralph Lauren Corp Class A currently shows a dividend yield of 0.98% relative to its recent price (as of Nov 3, 2026).
What growth is priced into Ralph Lauren Corp Class A (RL)?
For today's price to be fair in a discounted-cash-flow model, Ralph Lauren Corp Class A would have to grow free cash flow by +18.9 % per year for five years (discount rate 10.1 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +13.0 % per year. As of Nov 3, 2026.
What discount rate (WACC) does the fair value of RL use?
Our models discount Ralph Lauren Corp Class A at 10.1 %: a base by market capitalisation (large), damped by beta 1.36, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Ralph Lauren Corp Class A that is +18.9 % per year a year over ten years, using the same discount rate (10.1 %) and the same formula as our fair value.
How much growth has Ralph Lauren Corp Class A (RL) delivered so far?
Over the past 5 years revenue at Ralph Lauren Corp Class A grew +13.0 % a year. The price currently implies +18.9 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Ralph Lauren Corp Class A (RL) growing?
The median revenue growth in the sector is +4.6 % a year. That is the yardstick for the growth priced into Ralph Lauren Corp Class A (+18.9 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Ralph Lauren Corp Class A (RL)?
The free-cash-flow yield on the price is 3.14 %: that much free cash flow Ralph Lauren Corp Class A produces per unit of market value. When it exceeds the discount rate of our models (10.1 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Ralph Lauren Corp Class A (RL)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Ralph Lauren Corp Class A it is $225.03 per share (as of Nov 3, 2026), against a price of $381.78. It is the blended result of 25 valuation models (cash flow, earnings, asset, dividend).
Is Ralph Lauren Corp Class A stock overvalued or undervalued in 2026?
As of Nov 3, 2026, RL trades above its calculated fair value: price $381.78, fair value $225.03, a gap of about −41% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of RL?
No. The price is what the market pays today ($381.78); the fair value is what the company's own numbers justify ($225.03). For Ralph Lauren Corp Class A the two are $156.75 per share apart. That gap is exactly why we show both numbers side by side.
How much is Ralph Lauren Corp Class A worth?
The market values Ralph Lauren Corp Class A at about $23.8B (market capitalisation, as of Nov 3, 2026). Per share that is $381.78; our models calculate a fair value of $225.03 per share.
What do the bullish and bearish scenarios say about RL?
Our models span a range for Ralph Lauren Corp Class A: cautious scenario $154.19, base $225.03, optimistic $313.14 per share (as of Nov 3, 2026, price $381.78). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of RL?
Ralph Lauren Corp Class A trades at a price-to-earnings ratio of 23.8 (as of Nov 3, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $225.03 is built from several models across several years. Median P/E at fiscal year-end, 9 fiscal years (2017 to 2026), reported earnings, 5 of the years ex one-offs: 19.3. Other multiples: PEG 1.9, P/B 8.4, P/S 2.8, EV/EBITDA 14.5.
What is the PEG ratio of RL?
The PEG ratio of Ralph Lauren Corp Class A is 1.86 (P/E divided by earnings growth, as of Nov 3, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Ralph Lauren Corp Class A (RL)?
Balance-sheet figures for Ralph Lauren Corp Class A (as of Nov 3, 2026): return on equity 37.5%, debt of 0.44 per unit of equity. They feed the Quality Score of 83/100, which measures business quality independently of the share price.
How far is RL from its 52-week high?
Ralph Lauren Corp Class A trades at $381.78, about 7% below its 52-week high of $412.07 and 22% above the low of $311.73 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of $225.03 is for.
Which stocks are comparable to Ralph Lauren Corp Class A?
From the same area (Consumer Cyclical) we also value Moncler S.p.A, LPP SA, Levi Strauss & Co, Gildan Activewear Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Ralph Lauren Corp Class A stock attractive at the current price?
The data as of Nov 3, 2026: price $381.78, calculated fair value $225.03 (−41%), Quality Score 83/100, from 25 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of RL calculated?
We run Ralph Lauren Corp Class A through 25 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $225.03, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Ralph Lauren Corp Class A itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Ralph Lauren Corp Class A (RL)?
The closing price on Nov 5, 2026 was $381.78. Our model-based fair value is $225.03, about 41% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Ralph Lauren Corp Class A right now?
A high-quality business (quality 83/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety. The price sits above even our optimistic bull case ($313.14). The favourable scenario is already priced in. A fairly wide model range ($154.19 to $313.14) leaves room in how you read the outcome.
Where does the earnings growth of Ralph Lauren Corp Class A (RL) come from?
Earnings per share at Ralph Lauren Corp Class A grew +7.1 % a year from 2015 to 2026. Broken into its drivers: revenue per share +3.0 %, EBIT margin +2.1 %, tax rate +1.2 %, residual (interest, one-offs) +0.7 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Ralph Lauren Corp Class A
How large is the market capitalisation of Ralph Lauren Corp Class A (RL)?
The market capitalisation of Ralph Lauren Corp Class A is $23.8B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Ralph Lauren Corp Class A (RL)?
The price-to-sales ratio of Ralph Lauren Corp Class A is 2.85 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Ralph Lauren Corp Class A (RL)?
Earnings per share at Ralph Lauren Corp Class A are $15.87 (price ÷ EPS = P/E 23.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Ralph Lauren Corp Class A (RL)?
The dividend yield of Ralph Lauren Corp Class A is 1.0% (payout 23.6%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Ralph Lauren Corp Class A (RL)?
The net margin of Ralph Lauren Corp Class A is 11.8% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Ralph Lauren Corp Class A (RL)?
The return on equity (ROE) of Ralph Lauren Corp Class A is 37.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Ralph Lauren Corp Class A (RL)?
On an EBIT basis the return on assets of Ralph Lauren Corp Class A is 12.7% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Ralph Lauren Corp Class A (RL)?
The operating margin of Ralph Lauren Corp Class A is 18.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Ralph Lauren Corp Class A (RL)?
Revenue at Ralph Lauren Corp Class A is growing +14.0% versus a year earlier (3y avg +8.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Ralph Lauren Corp Class A (RL)?
Earnings per share at Ralph Lauren Corp Class A are growing +21.6% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Ralph Lauren Corp Class A (RL) carry?
The net debt of Ralph Lauren Corp Class A is $1.0B (fiscal year 2026, ≈ 1.3 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 3, 2026