Ralph LaurenRL +1.89%86 Graham Number is $107.04 as of Mar. 2026, which is 5624% above its 10-year median of 1.87. GuruFocus rates RL with a GF Score™ of 86/100 and a GF Value™ of $264.87 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 709 Manufacturing - Apparel & Accessories companies, Ralph Lauren ranks worse than 90.69% on this metric.
Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.
As of today (2026-07-12), the stock price of Ralph Lauren is $394.90. Ralph Lauren's graham number for the quarter that ended in Mar. 2026 was $107.04. Therefore, Ralph Lauren's Price to Graham Number ratio for today is 3.69.
The historical rank and industry rank for Ralph Lauren's Graham Number or its related term are showing as below:
RL'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.16 Med: 1.87 Max: 4.33
Current: 3.69
During the past 13 years, the highest Price to Graham Number ratio of Ralph Lauren was 4.33. The lowest was 1.16. And the median was 1.87.
RL's Price-to-Graham-Number is ranked worse than 90.69% of 709
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 1.02
vs RL: 3.69
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Ralph Lauren (NYSE:RL) Graham Number Explanation
Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:
Current price should not be more than 15 times average earnings of the past three years.
Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)
Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.
In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.
Ralph Lauren's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
394.90
/
107.04
=
3.69
* 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.
Be Aware
Please keep these in mind:
1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.
Ralph Lauren Graham Number Related Terms
Ralph Lauren Graham Number Historical Data
* Premium members only.
The historical data trend for Ralph Lauren's Graham Number 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 Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number 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 Price-to-Graham-Number vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Ralph Lauren's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Ralph Lauren's Price-to-Graham-Number falls into.
* 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 Graham Number of $107.04 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Ralph Lauren and its competitors. This is 5624% above median its historical median of 1.87. Over the past decade, Ralph Lauren's Graham Number has ranged from 1.16 to 4.33. According to the industry distribution chart, Ralph Lauren ranks #643 out of 709 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 90.7%.
Is Ralph Lauren's Graham Number too high?
Ralph Lauren's current Graham Number of $107.04 is 5624% above median its 10-year median of 1.87. Over the past 10 years, this metric has ranged from a low of 1.16 to a high of 4.33. The Manufacturing - Apparel & Accessories industry median Graham Number is 1.02. Ralph Lauren's value of $107.04 is 10394.1% above this industry median. Based on the distribution chart, Ralph Lauren ranks #643 out of 709 companies in the Manufacturing - Apparel & Accessories industry, which is in the bottom quartile relative to peers. 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 Graham Number compare to LEVI and VFC?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Ralph Lauren ranks #643 out of 709 companies for Graham Number. This places Ralph Lauren in the lower half of its industry. The industry median Graham Number is 1.02. Ralph Lauren's value of $107.04 is 10394.1% above this benchmark. Historically, Ralph Lauren's own Graham Number has ranged from 1.16 to 4.33 over the past decade. While the company's 10-year median is 1.87 vs. the industry median of 1.02, 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 Graham Number for a Manufacturing - Apparel & Accessories company?
The median Graham Number among Manufacturing - Apparel & Accessories companies is 1.02, based on 709 companies in the industry. Companies in the top quartile (top 25%) have a Graham Number significantly above this median, while those in the bottom quartile fall well below. However, Graham Number should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ralph Lauren's current Graham Number of $107.04 is 10394.1% 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 Graham Number mean?
A high Graham Number can signal that a stock is expensive relative to its fundamentals. The Graham Number values a company based on its per-share earnings and book value. View historical data on Ralph Lauren and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Graham Number is 1.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ralph Lauren's current Graham Number is $107.04, which is 5624% above median its own 10-year median of 1.87. 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 $264.87, compared to a current price of $394.90 — trading 49.1% above its estimated fair value. The current Graham Number is $107.04, which is 5624% above median its 10-year median of 1.87 and 10394.1% above the Manufacturing - Apparel & Accessories industry median of 1.02. 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 Graham Number calculated?
Graham Number is calculated from a company's financial statements. For Ralph Lauren (RL), the current Graham Number is $107.04 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 (RL) Overvalued in 2026?
Based on GuruFocus' analysis, Ralph Lauren stock appears to be overvalued.
The current stock price of $394.90 is trading 49.1% above its estimated GF Value™ of $264.87.
GuruFocus considers Ralph Lauren to be Significantly Overvalued.
Key valuation signals for RL:
Graham Number: $107.04 (5624% above median its 10-year median of 1.87)
GF Value™: $264.87 vs. price of $394.90 (49.1% above fair value)
Industry Position: 10394.1% above the Manufacturing - Apparel & Accessories median (#643 of 709)
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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