Independent equity research
Is Ralph Lauren (RL) a Buy, Hold or Sell?
Ralph Lauren — our independent, AI-built valuation and rating, in brief.
SELL (reduce into strength)
12-mo fair value
$300.00
To fair value
−12%
By · report dated 2026-08-14 · fair value derived independently of the market price.
The thesis, in brief
Ralph Lauren is executing, but at $389 the market already discounts a sustained ~28% EBIT margin or 6%+ perpetual growth at a 10.4% WACC; on 21.2x FY2027E adj EPS - an 82% premium to the branded-apparel peer median on identical 16.4% ROIC - RL should de-rate toward $300 unless margin passes 19% by FY2029
How we value it
We value Ralph Lauren using 10-yr FCFF DCF (60%) + P/E and EV/EBITDA composite vs own history and peers (40%). The 12-month fair value is set from that intrinsic estimate first, then compared to the market to read the upside or downside — never anchored to the current price.
What the full report covers
- Business & moat + industry cycle
- Earnings quality & normalized EPS
- Returns on capital (ROIC vs WACC)
- Balance-sheet safety
- Two independent valuations (DCF + multiples)
- Bear / base / bull fair values
- Earnings-call analysis
- Insider activity & positioning
- Technicals (RSI / ADX)
- A falsifiable thesis
Read the full Ralph Lauren report
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