Ralph Lauren RL
United StatesConsumer Cyclical · Apparel ManufacturingUSD
446.71 USD (+23.7%)
17 analysts
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Ralph Lauren is an American fashion and luxury company that designs, markets, and sells clothing, accessories, and lifestyle products under its brands (Ralph Lauren, Polo, etc.) through its own stores, department stores, and its online channel.
Key points
from its scores- ✓High-quality business8.6
- ✓Very solid balance sheet7.6
- ✓Strong growth7.5
- ✕Unfavourable risk and backdrop4.6
- !Modest dividend5.0
AI analysis
bottom line, main risk, context and newsThe quality of the business and the healthy balance sheet justify the premium, but growth is already reflected in the multiple.
Ralph Lauren presents solid fundamentals: a gross margin of 70.27%, ROE of 37.54%, and Net Debt/EBITDA of 0.67, with revenue growth of 14% and earnings growth of 21.6%. The forward P/E of 17.22 suggests a reasonable valuation for the quality of the business, although the PEG of 1.98 indicates that growth is already partially priced in.
The main risk is dependence on discretionary consumer spending in the US and Europe: an economic slowdown or a shift in consumer preferences towards more affordable brands could pressure margins and growth.
Context and risks
Ralph Lauren has no material exposure to current macro factors. Its luxury and discretionary consumer business does not significantly depend on commodities, shipping routes, or interest rates, and its balance sheet is solid (Net Debt/EBITDA of 0.67). The rise in US rates could slightly affect discretionary consumption, but it is not a dominant factor for this company.
Is Ralph Lauren stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 27% above the Consumer Cyclical median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 22.8 | 17.8 | +27% |
| EV / EBITDA | 14.2 | 11.2 | +26% |
| Price / book | 7.9 | 2.9 | +175% |
| Price / sales | 2.6 | 1.3 | +105% |
Sector: median of the 228 Consumer Cyclical companies analysed. In bold, the multiples used for the comparison.
Valuation score: 6.0 out of 10 (median for Consumer Cyclical: 6.6).
Average analyst target: 446.71 USD, +23.7% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 8.6 (sector 5.7), Growth 7.5 (sector 5.9).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Cyclical medianValuation
- P/E
- 22.8
- Forward P/E
- 17.2
- EV / EBITDA
- 14.2
- Price / book
- 7.9
- Price / sales
- 2.6
- PEG
- 1.98
- Market cap
- 21.5B USD
- Enterprise value
- 22.6B USD
Profitability
- ROE
- 37.5%
- ROA
- 11.0%
- ROIC (approx.)
- 26.9%
- Gross margin
- 70.3%
- Operating margin
- 18.4%
- Net margin
- 11.8%
- Free cash flow
- 880.1M USD
- FCF yield
- 4.1%
- Cash conversion
- 55%
Solvency
- Total debt
- 3.0B USD
- Net debt
- 1.1B USD
- Cash
- 1.9B USD
- EBITDA
- 1.6B USD
- Net debt / EBITDA
- 0.67
- Debt / equity
- 110.37
- Current ratio
- 2.04
- Quick ratio
- 1.32
Growth
- Revenue growth
- +14.0%
- Earnings growth
- +21.6%
- EPS (TTM)
- 15.87 USD
- EPS (forward)
- 20.97 USD
Dividend
- Dividend yield
- 1.1%
- Payout
- 23.5%
Risk and market
- Beta
- 1.35
- Analyst consensus
- Buy (17)
- Target price
- 446.71 USD
- 52-week range
- 306.55 – 421.60
Recent news
All RL news →Compare it with its sector
All 228 in Consumer Cyclical →Frequently asked questions about Ralph Lauren
Is Ralph Lauren stock cheap or expensive?
On P/E and EV / EBITDA, it trades 27% above the Consumer Cyclical median on average. Valuation score: 6.0 out of 10 (median for Consumer Cyclical: 6.6). Average analyst target: 446.71 USD, +23.7% versus the price. This is not investment advice.
What score does Ralph Lauren get on MeridIAn Screener?
It scores 6.8 out of 10, rank 347 of 2,130 (better than 83% of the companies analysed). Its strongest category is Quality / Moat (8.6) and its weakest, Risk & Context (4.6). Analysis of 08/10/2026.
What is Ralph Lauren's P/E ratio?
Its P/E is 22.8: the share price equals 22.8 times earnings per share over the last 12 months. The Consumer Cyclical median is 17.8. Based on the earnings analysts expect, the forward P/E is 17.2.
How much is Ralph Lauren worth on the stock market?
Its market capitalisation is 21.5B USD and its enterprise value, debt included, is 22.6B USD.
How much debt does Ralph Lauren have?
Its net debt (debt minus cash) is 1.1B USD. That is 0.67 times its EBITDA; the Consumer Cyclical median is 1.91.
Does Ralph Lauren pay a dividend?
Yes: its dividend yield is 1.11% and it pays out 24% of its earnings.
How has Ralph Lauren stock performed over the last year?
It has risen 18.0% over the last year, excluding dividends. Over the last 52 weeks it has traded between 306.55 and 421.60 USD. Past performance does not guarantee future results.
What do analysts think of Ralph Lauren?
17 analysts cover it; their average recommendation is “Buy” and their average target is 446.71 USD (+23.7% versus the price). It is an estimate, not market data.