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Ralph Lauren’s Stock Analysis Valuation Assumptions:

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 4.224%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 3%

HISTORICAL DATA

Revenue growth in the last 10 years (CAGR): -1.38%

Earnings growth in the last 10 years (CAGR): 0.03%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 5.64%

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FUTURE ASSUMPTIONS

End of Year FCF growth: 5%

Growth until end of 2026: 4%

Growth until end of 2034: 3%

Perpetual growth: 2.8%

Net Debt: $0.540B

Restricted Stock Units Present Value Assumption: $0.475B

Stock Valuation based on these assumptions: $318

Last update 05/18/2025

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All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Ralph Lauren (RL) and I don’t plan to add a position in the coming days.