Ralph Lauren Corporation designs, markets, and distributes lifestyle products in four categories: apparel, home, accessories and fragrances. The company was founded in 1967 and is based in New York, New York.
RL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Ralph Lauren Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Ralph Lauren Corp ranked in the 14th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Ralph Lauren Corp, consider:
Its compound free cash flow growth rate, as measured over the past 5.5 years, is -0.16% -- higher than merely 10.54% of stocks in our DCF forecasting set.
The company has produced more trailing twelve month cash flow than 62.23% of its sector Consumer Cyclical.
Ralph Lauren Corp's effective tax rate, as measured by taxes paid relative to net income, is at 130 -- greater than 98.01% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
DRI, RACE, MCD, NTZ, and RUTH can be thought of as valuation peers to RL, in the sense that they are in the Consumer Cyclical sector and have a similar price forecast based on DCF valuation.
In an unsurprising move, Ralph Lauren (RL) says it will trim its workforce as part of a structural change to adapt to a higher mix of a online sales."The changes happening in the world around us have accelerated the shifts we saw pre-Covid, and we are fast-tracking some of our...