Stock fact sheet · data as of
Ralph Lauren Corporation (RL): fair value, margin of safety and Wheel Score
Consumer Cyclical · Apparel - Manufacturers · United States · High Growth
Is RL undervalued?
RL closed at 375.27 on 16 Oct 2026 against a GLS average fair value of 353.37 - 6.2% above fair value, which our screens read as "fairly priced". 4 of 9 models are above the current price. There is no discount to lean on here, so the margin of safety is not the reason to look at the stock.
The 9 models disagree widely: DDM gives 56.28 while GLS Growth gives 1,001.22. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files RL under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for RL
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 157.97 | -58% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 129.09 | -66% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 380.80 | +1% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 125.22 | -67% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 1,001.22 | +167% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 460.72 | +23% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 687.33 | +83% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 56.28 | -85% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 181.72 | -52% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | 4.83 | -99% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 456.67 | +22% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health RL scores 9/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 6.3 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are high - ROIC 16.1%, ROE 33.1%, ROA 14.6% - with debt at 1.05 times equity and a free-cash-flow yield of 4.7%.
The dividend yield is 1.02% with a payout ratio of 22% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from North America 38%, Europe 30%, Asia 30% (quarter Q1 FY2027).
Institutional ownership scores 8/10, insider activity 1/10 and Congressional trading 1/10 on the GLS smart-money scales.
| Piotroski F-score | 9 / 9 | ROIC | 16.1% |
|---|---|---|---|
| GLS Moat | 6.3 / 10 | ROE | 33.1% |
| Debt / equity | 1.05 | ROA | 14.6% |
| Free-cash-flow yield | 4.7% | Payout ratio | 22% |
| Institutions | 8 / 10 | Insiders · Congress | 1 · 1 / 10 |
Wheel Score 75: Good
RL scores 75 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 10/25), Piotroski health (20/20), the GLS moat (9/15), the option premium on offer (20/20) and how easily the stock trades (16/20). Value (10/25) is the part holding the score back.
Implied volatility is 42% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 7,562 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 502k shares a day on a market cap of $22.4B, with a beta of 1.35 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 16 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 10 / 25 | -6% margin of safety | |
| Health | 20 / 20 | Piotroski 9/9 | |
| Moat | 9 / 15 | moat 6.3/10 | |
| Premium | 20 / 20 | implied volatility 42% | |
| Stability | 16 / 20 | 502k shares/day, $22.4B cap, beta 1.35 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 5 Nov 2026 (before the open), 20 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Apparel - Manufacturers
The 12 companies below are the closest to Ralph Lauren Corporation by market cap within the Apparel - Manufacturers industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| LEVI Levi Strauss & Co. | 20.65 | 24.40 | +15% | 82Prime | $7.9B |
| GIL Gildan Activewear Inc. | 41.99 | 20.97 | -100% | 52Fair | $7.8B |
| VFC V.F. Corporation | 16.48 | 22.87 | +28% | 86Prime | $6.5B |
| KTB Kontoor Brands, Inc. | 72.94 | 136.04 | +46% | 88Prime | $4.0B |
| PVH PVH Corp. | 81.56 | 162.83 | +50% | 45Weak | $3.8B |
| ZGN Ermenegildo Zegna N.V. | 12.79 | 13.84 | +8% | 73Good | $3.4B |
| FIGS FIGS, Inc. | 19.54 | 9.87 | -98% | 52Fair | $3.2B |
| COLM Columbia Sportswear Company | 60.82 | 103.94 | +41% | 85Prime | $3.1B |
| UAA Under Armour, Inc. | 4.79 | 5.99 | +20% | 45Weak | $2.0B |
| UA Under Armour, Inc. | 4.66 | 5.51 | +15% | 45Weak | $2.0B |
| GIII G-III Apparel Group, Ltd. | 28.40 | 100.94 | +72% | 81Prime | $1.2B |
| GOOS Canada Goose Holdings Inc. | 8.27 | 12.40 | +33% | 74Good | $808M |
Screen the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about RL
Is RL undervalued right now?
Not meaningfully: at 375.27 the stock trades within a few percent of the GLS average fair value of 353.37 (6.2% above fair value, data as of 16 Oct 2026).
What is the Wheel Score of RL and what does it mean?
RL scores 75 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for RL?
353.37 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Ralph Lauren Corporation report earnings next?
The next earnings report is due on 5 Nov 2026 (before the open), 20 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does RL have listed options, and how liquid are they?
Yes. The nightly snapshot found 440 listed contracts with 7,562 open interest across all expiries and implied volatility of 42% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.