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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Ralph Lauren Corp. To summarize, we found that Ralph Lauren Corp ranked in the 14th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. The most interesting components of our discounted cash flow analysis for Ralph Lauren Corp ended up being:
Its compound free cash flow growth rate, as measured over the past 5.77 years, is -0.15% -- higher than just 11.24% of stocks in our DCF forecasting set.
The company has produced more trailing twelve month cash flow than 62.65% 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 97.96% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
MCD, BBGI, EVC, GOLF, and NWSA 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.
During Tuesday's Mad Money program, Jim Cramer told viewers that Ralph Lauren rose 5.4% Monday after it announced it's laying off 15% of its staff as it continues to transition from mall-based stores to online sales. In this daily bar chart of RL, below, we can see that prices are basing in the $75 area (plus or minus $10) since March. Beneath the surface the On-Balance-Volume (OBV) line has been in a decline, telling us despite the sideways price movement sellers of RL have been more aggressive with heavier being traded on days when RL has closed lower.
Ralph Lauren announced plans to slash 15% of its global workforce by the end of its fiscal year 2021 as the luxury apparel maker embarks on a reorganization effort to cut costs and shift more business to online sales to catalyze future growth.Investors welcomed Ralph Lauren’s (RL) move as shares closed 5.4% higher on Monday. The luxury fashion retailer said that the job cuts are expected to result in gross annualized pre-tax expense savings of about $180 million to $200 million. The savings will be realized primarily in the company's fiscal 2022. In addition, Ralph Lauren expects to incur total estimated pre-tax charges of about $120 million to $160 million due to the workforce reduction plans.As part of the reorganization plan, Ralph Lauren seeks to simplify its “global organizatio...
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...