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Ralph LaurenRL -1.74%86 EV-to-EBIT is 19.19 as of Jul. 17, 2026, which is 24% above its 10-year median of 15.48. GuruFocus rates RL with a GF Score™ of 86/100 and a GF Value™ of $265.10 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 804 Manufacturing - Apparel & Accessories companies, Ralph Lauren ranks worse than 68.28% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Ralph Lauren's Enterprise Value for the quarter that ended in Mar. 2026 was $21,596 Mil.
Ralph Lauren's 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 $1,232 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.
Ralph Lauren EV-to-EBIT Related Terms
Ralph Lauren EV-to-EBIT Historical Data
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The historical data trend for Ralph Lauren's EV-to-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.
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.
Ralph Lauren's current Enterprise Value is $23,641 Mil.
Ralph Lauren's 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 $1,232 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.
Ralph Lauren (RL) has a EV-to-EBIT of 19.19 as of Jul. 17, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Ralph Lauren and its competitors. This is 24% above median its historical median of 15.48. According to the industry distribution chart, Ralph Lauren ranks #549 out of 804 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 68.3%.
Is Ralph Lauren's EV-to-EBIT too high?
Ralph Lauren's current EV-to-EBIT of 19.19 is 24% above median its 10-year median of 15.48. The Manufacturing - Apparel & Accessories industry median EV-to-EBIT is 13.32. Ralph Lauren's value of 19.19 is 44.1% above this industry median. Based on the distribution chart, Ralph Lauren ranks #549 out of 804 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, Ralph Lauren has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ralph Lauren's EV-to-EBIT compare to LEVI and VFC?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Ralph Lauren ranks #549 out of 804 companies for EV-to-EBIT. This places Ralph Lauren in the lower half of its industry. The industry median EV-to-EBIT is 13.32. Ralph Lauren's value of 19.19 is 44.1% above this benchmark. While the company's 10-year median is 15.48 vs. the industry median of 13.32, Ralph Lauren has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Manufacturing - Apparel & Accessories company?
The median EV-to-EBIT among Manufacturing - Apparel & Accessories companies is 13.32, based on 804 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ralph Lauren's current EV-to-EBIT of 19.19 is 44.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Ralph Lauren and its competitors. For the Manufacturing - Apparel & Accessories industry, the median EV-to-EBIT is 13.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ralph Lauren's current EV-to-EBIT is 19.19, which is 24% above median its own 10-year median of 15.48. 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 (RL) is currently considered Significantly Overvalued. The stock's GF Value™ is $265.10, compared to a current price of $381.35 — trading 43.9% above its estimated fair value. The current EV-to-EBIT is 19.19, which is 24% above median its 10-year median of 15.48 and 44.1% above the Manufacturing - Apparel & Accessories industry median of 13.32. Ralph Lauren's overall GF Score™ is 86/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Ralph Lauren (RL), the current EV-to-EBIT is 19.19 as of Jul. 17, 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 (RL) Overvalued in 2026?
Based on GuruFocus' analysis, Ralph Lauren stock appears to be overvalued.
The current stock price of $381.35 is trading 43.9% above its estimated GF Value™ of $265.10.
GuruFocus considers Ralph Lauren to be Significantly Overvalued.
Key valuation signals for RL:
EV-to-EBIT: 19.19 (24% above median its 10-year median of 15.48)
GF Value™: $265.10 vs. price of $381.35 (43.9% above fair value)
Industry Position: 44.1% above the Manufacturing - Apparel & Accessories median (#549 of 804)
No single metric tells the full story. See the RL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
86GF Score
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