US Equities Analysis

RL — Ralph Lauren Corporation

Research evidence pack

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 13.37%
Profit Margins 11.6%
Return on Equity 34.66%
Return on Assets 10.88%
Free Float 0.04B
Dividend Yield 0.91%
Short Int % Utilisation 10.51%

2.2 Growth

Metric Value
Revenue Growth 16.6%
Free Cash Flow 0.66B
EBITDA 15.36 (Ratio)
Enterprise Value 23.35B
EV/Revenue 2.88
EV/EBITDA 15.36

Revenue growth of 16.6% indicates steady, moderate expansion.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 43.94%
Risk / Std Dev (Ann.)* 34.89%
1-Year Price Return* 35.27%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $388.92
52-Week Range $283.50 – $421.60
Observation Count 251 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

2.5 FCFF DCF Valuation

Valuation basis: This research model follows a five-year, unlevered FCFF DCF. It starts from reported annual operating inputs, forecasts revenue and operating cash conversion under an explicit mechanical policy, discounts FCFF at WACC, applies a Gordon-growth terminal value, and bridges enterprise value to an indicative common-equity value per share. It is an analytical estimate rather than a recommendation or personalised target price.

Step 1 — Forecast Operating Profit and NOPAT

Reported operating input Value
Revenue $8.11B
Prior annual revenue $7.08B
EBIT $1.23B
Tax rate 20.09%
NOPAT = EBIT × (1 − tax rate) $984.41M
Forecast start-growth basis 14.63%
Forecast policy latest reported annual revenue growth, bounded to -10.00% / 15.00%

Step 2 — Calculate FCFF

Current FCFF building block Value
NOPAT $984.41M
Add: depreciation & amortisation $233.00M
Less: capital expenditure -$449.30M
Less/(add): working-capital cash-flow movement -$158.30M
Current unlevered FCFF $609.81M

Explicit FCFF forecast

Forecast year Revenue growth NOPAT D&A Capex Change in NWC FCFF Present value
1 14.63% $1.13B $267.08M -$515.02M -$181.46M $699.01M $663.50M
2 11.60% $1.26B $298.05M -$505.57M -$202.50M $849.24M $726.26M
3 8.56% $1.37B $323.58M -$473.77M -$219.84M $997.07M $768.24M
4 5.53% $1.44B $341.48M -$420.73M -$232.00M $1.13B $785.46M
5 2.50% $1.48B $350.02M -$350.02M -$237.80M $1.24B $776.18M

Step 3 — Determine the Discount Rate (WACC)

WACC input Value
Risk-free rate 4.71%
Equity risk premium assumption 5.50%
Beta 1.37
Cost of equity 12.25%
Pre-tax cost of debt 1.91%
WACC 10.99%
WACC validation within standard range

Step 4 — Estimate Terminal Value

Terminal-value input Value
Perpetuity growth rate 2.50%
Terminal value $14.98B
Implied terminal EV / EBITDA 6.81x
Terminal value as % of enterprise value 70.51%

Step 5 — Discount Cash Flows to Enterprise Value

Enterprise-value component Value
Present value of explicit FCFF $3.72B
Present value of terminal value $8.89B
Indicated enterprise value $12.61B
Discounting convention mid-year for explicit FCFF; terminal value discounted at year-end five

Step 6 — Convert Enterprise Value to Equity Value

Equity bridge Value
Indicated enterprise value $12.61B
Less: gross interest-bearing debt $3.01B
Add: cash and equivalents $2.06B
Add: affiliate investments $0.00
Less: minority interests $0.00
Indicated common equity value $11.67B

Step 7 — Calculate Indicative Value Per Share

Per-share output Value
Shares used 62,300,000.00
Share-count basis reported diluted weighted-average shares
Current market price $379.25
DCF indicative value per share $187.29
Indicative value vs. market price -50.62%

Model Integrity Checks

Check Result
Perpetuity growth is below the risk-free rate pass
Perpetuity growth is below WACC pass
WACC is within the configured operating-company range pass
Terminal-year FCFF is positive pass
Terminal capex converges to D&A pass
Terminal-value concentration within review band
Implied price differs from spot by more than 30% review required

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks 4/4 evidenced checks
Lynch-inspired balance-and-growth checks 4/4 evidenced checks

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:47:34.948508 UTC; latest reported fiscal period: 2026-03-31 00:00:00. Default assumptions: five-year forecast, mid-year discounting for explicit FCFF, a maximum 2.50% perpetuity-growth rate below both WACC and the risk-free rate, historical operating-ratio persistence, and capex convergence to D&A by year five. No sell-side consensus or management guidance is substituted for reported inputs. This is research and analysis only, not personalized financial advice.

us-equity stock equity rl consumer-discretionary apparel,-accessories--luxury-goods nasdaq