Ralph Lauren Corporation (RL) Financial Ratios
30 years of historical data (1997–2026) · Consumer Cyclical · Apparel - Manufacturers
EV/EBITDA
↑
22.24
↑+67% vs avg
5yr avg: 13.31
30Y Low5.7·High49.1
P/FCF
↑
33.77
↑+51% vs avg
5yr avg: 22.30
30Y Low7.6·High121.7
P/B Ratio
↑
9.06
↑+87% vs avg
5yr avg: 4.84
30Y Low1.6·High7.2
ROE
↑
34.7%
↓+28% vs avg
5yr avg: 27.0%
30Y Low-5%·High45%
Debt/EBITDA
↓
2.54
↓-22% vs avg
5yr avg: 3.25
30Y Low0.0·High17.7
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
RL Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Ralph Lauren Corporation trades at 27.3x earnings, 54% above its 5-year average of 17.8x, sitting at the 93rd percentile of its historical range. Compared to the Consumer Cyclical sector median P/E of 21.2x, the stock trades at a premium of 29%. On a free-cash-flow basis, the stock trades at 33.8x P/FCF, 51% above the 5-year average of 22.3x.
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $25.2B | $20.4B | $13.8B | $12.5B | $8.1B | $8.3B | $9.0B | $5.2B | $10.6B | $9.2B | $6.7B |
| Enterprise Value | $26.2B | $21.4B | $14.5B | $14.5B | $10.5B | $9.8B | $10.0B | $6.9B | $10.9B | $8.8B | $6.9B |
| P/E Ratio → | 27.33 | 21.70 | 18.58 | 19.32 | 15.39 | 13.86 | — | 13.65 | 24.61 | 56.75 | — |
| P/S Ratio | 3.10 | 2.52 | 1.95 | 1.88 | 1.25 | 1.34 | 2.04 | 0.85 | 1.68 | 1.49 | 1.01 |
| P/B Ratio | 9.06 | 7.19 | 5.33 | 5.10 | 3.31 | 3.28 | 3.45 | 1.95 | 3.22 | 2.67 | 2.05 |
| P/FCF | 33.77 | 27.37 | 13.55 | 13.80 | 41.60 | 15.16 | 32.88 | 10.84 | 18.08 | 11.34 | 10.10 |
| P/OCF | 21.83 | 17.69 | 11.18 | 11.67 | 19.59 | 11.62 | 23.57 | 6.96 | 13.52 | 9.46 | 7.09 |
P/E links to full P/E history page with 30-year chart
RL EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Ralph Lauren Corporation's enterprise value stands at 22.2x EBITDA, 67% above its 5-year average of 13.3x. The Consumer Cyclical sector median is 12.2x, placing the stock at a 83% premium on an enterprise-value basis.
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.64 | 2.06 | 2.19 | 1.64 | 1.58 | 2.28 | 1.11 | 1.73 | 1.42 | 1.04 |
| EV / EBITDA | 22.24 | 18.19 | 12.63 | 14.73 | 11.40 | 9.58 | 49.12 | 11.69 | 12.97 | 11.05 | 32.26 |
| EV / EBIT | 22.21 | 18.19 | 14.63 | 17.70 | 14.40 | 12.18 | — | 19.93 | 18.13 | 17.29 | — |
| EV / FCF | — | 28.71 | 14.28 | 16.04 | 54.48 | 17.94 | 36.69 | 14.16 | 18.66 | 10.78 | 10.39 |
RL Profitability
Margins and return-on-capital ratios measuring operating efficiency
Ralph Lauren Corporation earns an operating margin of 14.5%, above the Consumer Cyclical sector average of 2.0%. Operating margins have expanded from 11.4% to 14.5% over the past 3 years, signaling improving operational efficiency. Return on equity of 34.7% is exceptionally high — well above the sector median of 5.3%. ROIC of 24.7% represents excellent returns on invested capital versus a sector median of 5.2%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 69.9% | 69.9% | 68.6% | 66.8% | 64.7% | 66.7% | 65.0% | 59.3% | 61.6% | 60.7% | 54.9% |
| Operating Margin | 14.5% | 14.5% | 13.2% | 11.4% | 10.9% | 12.8% | -1.0% | 5.1% | 8.9% | 8.1% | -1.4% |
| Net Profit Margin | 11.6% | 11.6% | 10.5% | 9.7% | 8.1% | 9.7% | -2.8% | 6.2% | 6.8% | 2.6% | -1.5% |
Return on Capital
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 34.7% | 34.7% | 29.5% | 26.5% | 21.0% | 23.3% | -4.6% | 12.9% | 12.8% | 4.8% | -2.8% |
| ROA | 14.0% | 14.0% | 10.9% | 9.7% | 7.2% | 7.7% | -1.6% | 5.8% | 7.1% | 2.8% | -1.7% |
| ROIC | 24.7% | 24.7% | 17.9% | 12.1% | 11.8% | 15.5% | -0.8% | 6.0% | 12.7% | 11.5% | -1.8% |
| ROCE | 24.8% | 24.8% | 18.6% | 14.5% | 13.1% | 13.6% | -0.8% | 6.4% | 12.1% | 11.0% | -1.9% |
RL Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Ralph Lauren Corporation carries a Debt/EBITDA ratio of 2.5x, which is moderately leveraged (47% below the sector average of 4.8x). Net debt stands at $1.0B ($3.0B total debt minus $2.0B cash). Interest coverage of 21.7x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.05 | 1.05 | 1.03 | 1.51 | 1.66 | 1.34 | 1.39 | 1.20 | 0.28 | 0.25 | 0.26 |
| Debt / EBITDA | 2.54 | 2.54 | 2.32 | 3.74 | 4.35 | 3.30 | 17.75 | 5.50 | 1.10 | 1.07 | 4.00 |
| Net Debt / Equity | — | 0.35 | 0.29 | 0.83 | 1.03 | 0.60 | 0.40 | 0.60 | 0.10 | -0.13 | 0.06 |
| Net Debt / EBITDA | 0.85 | 0.85 | 0.65 | 2.05 | 2.70 | 1.49 | 5.11 | 2.74 | 0.40 | -0.57 | 0.90 |
| Debt / FCF | — | 1.34 | 0.73 | 2.24 | 12.88 | 2.78 | 3.81 | 3.32 | 0.58 | -0.56 | 0.29 |
| Interest Coverage | 21.73 | 21.73 | 22.56 | 19.42 | 18.13 | 14.97 | -0.54 | 19.55 | 29.14 | 27.88 | -7.46 |
RL Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Ralph Lauren Corporation's current ratio of 2.10x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 1.55x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has declined from 2.29x to 2.10x over the past 3 years.
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.10 | 2.10 | 1.78 | 2.29 | 2.23 | 1.87 | 2.66 | 1.61 | 3.00 | 2.24 | 2.55 |
| Quick Ratio | 1.55 | 1.55 | 1.33 | 1.68 | 1.51 | 1.44 | 2.18 | 1.26 | 2.31 | 1.76 | 1.86 |
| Cash Ratio | 1.12 | 1.12 | 0.98 | 1.22 | 1.05 | 1.15 | 1.75 | 1.01 | 1.66 | 1.26 | 1.17 |
| Asset Turnover | — | 1.26 | 1.00 | 1.00 | 0.95 | 0.81 | 0.56 | 0.85 | 1.06 | 1.01 | 1.18 |
| Inventory Turnover | 2.41 | 2.41 | 2.34 | 2.44 | 2.13 | 2.12 | 2.03 | 3.40 | 2.97 | 3.19 | 3.79 |
| Days Sales Outstanding | — | 22.12 | 31.57 | 30.88 | 32.84 | 31.86 | 47.43 | 24.61 | 35.10 | 38.48 | 36.97 |
RL Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Ralph Lauren Corporation returns 3.3% to shareholders annually — split between a 0.8% dividend yield and 2.5% buyback yield. The payout ratio of 23.0% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 3.7% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 0.8% | 1.1% | 1.5% | 1.6% | 2.5% | 1.8% | 0.6% | 3.9% | 1.8% | 1.8% | 2.4% |
| Payout Ratio | 23.0% | 23.0% | 27.1% | 30.1% | 37.9% | 25.0% | — | 53.1% | 44.3% | 99.8% | — |
Total Shareholder Return Metrics
| Metric | TTM | FY 2026 | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.7% | 4.6% | 5.4% | 5.2% | 6.5% | 7.2% | — | 7.3% | 4.1% | 1.8% | — |
| FCF Yield | 3.0% | 3.7% | 7.4% | 7.2% | 2.4% | 6.6% | 3.0% | 9.2% | 5.5% | 8.8% | 9.9% |
| Buyback Yield | 2.5% | 3.1% | 3.5% | 3.6% | 6.1% | 5.9% | 0.4% | 13.2% | 4.7% | 0.2% | 3.2% |
| Total Shareholder Yield | 3.3% | 4.1% | 4.9% | 5.2% | 8.5% | 7.7% | 1.0% | 17.1% | 6.5% | 1.9% | 5.6% |
| Shares Outstanding | — | $62M | $64M | $67M | $69M | $74M | $74M | $77M | $82M | $83M | $83M |
Peer Comparison
Compare RL with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 RLYou | $25B | 27.3 | 22.2 | 33.8 | 69.9% | 14.5% | 34.7% | 24.7% | 2.5 |
 PVH | $4B | 145.4 | 29.1 | 6.6 | 57.5% | 7.3% | 0.5% | 6.1% | 17.5 |
 HBI | $2B | -7.1 | 16.6 | 10.1 | 38.8% | 5.3% | -141.4% | 4.5% | 9.2 |
 VFC | $7B | 27.1 | 12.3 | 13.4 | 54.8% | 6.3% | 15.3% | 7.3% | 5.6 |
 TPR | $29B | 175.0 | 49.7 | 26.5 | 75.4% | 5.9% | 9.8% | 6.8% | 6.1 |
 CPRI | $2B | 26.4 | 17.9 | 167.2 | 58.9% | 2.4% | 40.4% | 2.6% | 7.0 |
 UAA | $3B | -5.2 | 56.8 | — | 45.5% | -0.7% | -30.0% | -0.9% | 26.1 |
 NKE | $54B | 20.9 | 12.7 | 16.5 | 42.7% | 8.0% | 23.3% | 16.7% | 2.4 |
 LEVI | $9B | 16.3 | 12.2 | 28.5 | 61.7% | 10.8% | 27.2% | 13.9% | 2.6 |
 OXM | $543M | -19.6 | 13.8 | 48.1 | 56.3% | 0.9% | -4.9% | 1.0% | 7.1 |
 GOOS | $950M | 63.0 | 7.8 | 9.5 | 61.1% | 5.8% | 3.8% | 6.8% | 3.6 |
| Consumer Cyclical Median | — | 21.2 | 12.2 | 15.6 | 36.2% | 2.0% | 5.3% | 5.2% | 4.8 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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RL — Frequently Asked Questions
Quick answers to the most common questions about buying RL stock.
What is Ralph Lauren Corporation's P/E ratio?
Ralph Lauren Corporation's current P/E ratio is 27.3x. The historical average is 21.3x. This places it at the 93th percentile of its historical range.
What is Ralph Lauren Corporation's EV/EBITDA?
Ralph Lauren Corporation's current EV/EBITDA is 22.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.2x.
What is Ralph Lauren Corporation's ROE?
Ralph Lauren Corporation's return on equity (ROE) is 34.7%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 17.7%.
Is RL stock overvalued?
Based on historical data, Ralph Lauren Corporation is trading at a P/E of 27.3x. This is at the 93th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Ralph Lauren Corporation's dividend yield?
Ralph Lauren Corporation's current dividend yield is 0.84% with a payout ratio of 23.0%.
What are Ralph Lauren Corporation's profit margins?
Ralph Lauren Corporation has 69.9% gross margin and 14.5% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Ralph Lauren Corporation have?
Ralph Lauren Corporation's Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.