Ralph Lauren (FRA:PRL) EBIT: €1,058 Mil (TTM As of Mar. 2026)


FRA:PRL Ralph Lauren Corp FRA:PRL
85 GF Score
Price €354.90
GF Value €226.24
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Ralph Lauren EBIT?

Ralph Lauren FRA:PRL +0.48% 85 EBIT is €1,058 Mil as of Mar. 2026. GuruFocus rates FRA:PRL with a GF Score™ of 85/100 and a GF Value™ of €226.24 (Significantly Overvalued). The stock has 6 warning signs investors should review.

Ralph Lauren's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was €179 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was €1,058 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Ralph Lauren's annualized ROC % for the quarter that ended in Mar. 2026 was 17.13%. Ralph Lauren's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 35.77%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Ralph Lauren's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 4.70%.

Ralph Lauren  (FRA:PRL) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Ralph Lauren's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=755.316 * ( 1 - 21.49% )/( (3354.255 + 3570.546)/ 2 )
=592.9985916/3462.4005
=17.13 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=6672.985 - 1445.31 - ( 1922.183 - max(0, 1704.242 - 3577.662+1922.183))
=3354.255

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=6694.667 - 1341.615 - ( 1786.225 - max(0, 1579.922 - 3362.428+1786.225))
=3570.546

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Ralph Lauren's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=714.836/( ( (1888.621 + max(21.265, 0)) + (2050.223 + max(36.417, 0)) )/ 2 )
=714.836/( ( 1909.886 + 2086.64 )/ 2 )
=714.836/1998.263
=35.77 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(393.438 + 981.588 + 139.799) - (1445.31 + 23.57 + 24.68)
=21.265

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(425.32 + 877.369 + 112.624) - (1341.615 + 19.03 + 18.251)
=36.417

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Ralph Lauren's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=1057.56/22497.133
=4.70 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Ralph Lauren EBIT Related Terms

Ralph Lauren EBIT Historical Data

* Premium members only.

The historical data trend for Ralph Lauren's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Ralph Lauren EBIT Chart

Ralph Lauren Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 734.21 683.97 754.03 920.19 1,065.59

Ralph Lauren Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 159.56 251.00 220.41 407.44 178.71

FRA:PRL vs LEVI, VFC, PVH: EBIT Comparison

For the Apparel Manufacturing subindustry, Ralph Lauren's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Ralph Lauren EV-to-EBIT vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Ralph Lauren's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Ralph Lauren's EV-to-EBIT falls into.


FRA:PRL
85GF Score
Ralph Lauren Corp FRA:PRL
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Ralph Lauren EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €1,058 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of €1,058 Mil mean?
Ralph Lauren (FRA:PRL) has a EBIT of €1,058 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Ralph Lauren.
Is Ralph Lauren's EBIT too high?
Ralph Lauren's current EBIT is €1,058 Mil. Overall, Ralph Lauren has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ralph Lauren's EBIT compare to LEVI and VFC?
Ralph Lauren's EBIT of €1,058 Mil can be compared against companies in the Manufacturing - Apparel & Accessories industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Manufacturing - Apparel & Accessories company?
A good EBIT depends on the Manufacturing - Apparel & Accessories industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Ralph Lauren. Ralph Lauren's current EBIT is €1,058 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ralph Lauren stock overvalued right now?
Based on GuruFocus' analysis, Ralph Lauren (FRA:PRL) is currently considered Significantly Overvalued. The stock's GF Value™ is €226.24, compared to a current price of €354.90 — trading 56.9% above its estimated fair value. The current EBIT is €1,058 Mil. Ralph Lauren's overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Ralph Lauren (FRA:PRL), the current EBIT is €1,058 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Ralph Lauren (FRA:PRL) Overvalued in 2026?

Based on GuruFocus' analysis, Ralph Lauren stock appears to be overvalued. The current stock price of €354.90 is trading 56.9% above its estimated GF Value™ of €226.24. GuruFocus considers Ralph Lauren to be Significantly Overvalued.

Key valuation signals for FRA:PRL:

  • EBIT: €1,058 Mil
  • GF Value™: €226.24 vs. price of €354.90 (56.9% above fair value)
  • GF Score™: 85/100 with 6 warning signs

No single metric tells the full story. See the FRA:PRL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Ralph Lauren Business Description

Address 650 Madison Avenue, New York, NY, USA, 10022
Founded by designer Ralph Lauren (current executive chairman and chief creative officer) in 1967 in New York City, Ralph Lauren Corp. designs, markets, and distributes lifestyle merchandise in North America (41% of fiscal 2026 sales), Europe (31%), and Asia (26%). Best known for its iconic polo shirts, its products also include other types of apparel, footwear, eyewear, jewelry, handbags, home goods, and fragrances. The company's brands include Ralph Lauren Collection, Polo Ralph Lauren, and Lauren Ralph Lauren. Distribution channels for Ralph Lauren include wholesale (department stores and specialty stores), retail (company-owned retail stores and e-commerce), and licensing.
85GF Score

Get the complete analysis for FRA:PRL

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€354.90
Price
€226.24
GF Value