MeritValue

RALPH LAUREN CORP

RLdata completeness 88%18 fiscal years on file
The thesis, from the filings

RALPH LAUREN CORP earns about 36% on invested capital, far above its ~9% cost of capital, and has bought back 16% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $107.5 and $878.31 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$6.22B1$6.44B2$6.63B3$7.08B3$8.11B3
Net income$600.1M4$522.7M5$646.3M6$742.9M6$941.1M6
Operating cash flow$715.9M7$411M8$1.07B9$1.24B9$1.15B9
Capital expenditure$166.9M10$217.5M11$164.8M11$216.2M11—
Free cash flow (derived)$549M7$193.5M8$904.9M9$1.02B9—
Total debt$1.64B12$1.14B13$1.14B14$1.14B15$1.24B15
Cash & equivalents$1.86B16$1.53B17$1.66B18$1.92B19$1.99B19
Diluted shares74.3M69.0M66.5M64.0M62.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$456.08
your share of equity
Profit it earned you last year
$151.06
Free cash flow it threw off
—
Debt you’d be carrying
$198.86

10 shares is a claim on $456.08 of net worth that earned you $151.06 last year, against $198.86 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
36% avg · 5y
FY22 28%FY23 27%FY24 35%FY25 43%FY26 47%

It earned about 36% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
−16% shares · 5y

Share count is down 16% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has fallen 24% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $107.5 and $878.31 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$878.31
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$904.9M
DCF · Growth Exit 5Y
$485.59
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$904.9M
Earnings Power Value
$107.5
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$646.3M
  • growthAssumed0.0%
Graham Number
$124.52
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $485.59
The three cases
Bear0.0%$219.55
Base20.0%$485.59
Bull20.0%$485.59

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2022-04-02 · accession 0001037038-24-000014 (Revenues)
  2. 10-K · period ending 2023-04-01 · accession 0001037038-25-000011 (Revenues)
  3. 10-K · period ending 2024-03-30 · accession 0001628280-26-037074 (Revenues)
  4. 10-K · period ending 2022-04-02 · accession 0001037038-24-000014 (NetIncomeLoss)
  5. 10-K · period ending 2023-04-01 · accession 0001037038-25-000011 (NetIncomeLoss)
  6. 10-K · period ending 2024-03-30 · accession 0001628280-26-037074 (NetIncomeLoss)
  7. 10-K · period ending 2022-04-02 · accession 0001037038-24-000014 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-04-01 · accession 0001037038-25-000011 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-03-30 · accession 0001628280-26-037074 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-04-02 · accession 0001037038-24-000014 (PaymentsToAcquireProductiveAssets)
  11. 10-K · period ending 2023-04-01 · accession 0001037038-25-000011 (PaymentsToAcquireProductiveAssets)
  12. 10-K · period ending 2022-04-02 · accession 0001037038-23-000015 (LongTermDebtNoncurrent)
  13. 10-K · period ending 2023-04-01 · accession 0001037038-24-000014 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2024-03-30 · accession 0001037038-25-000011 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2025-03-29 · accession 0001628280-26-037074 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2022-04-02 · accession 0001037038-23-000015 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-04-01 · accession 0001037038-24-000014 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2024-03-30 · accession 0001037038-25-000011 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2025-03-29 · accession 0001628280-26-037074 (CashAndCashEquivalentsAtCarryingValue)