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Ralph LaurenRL -1.79%89 Forward Rate of Return (Yacktman) % is 20.52% as of Jun. 2026. GuruFocus rates RL with a GF Score™ of 89/100 and a GF Value™ of $301.89 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 818 Manufacturing - Apparel & Accessories companies, Ralph Lauren ranks better than 80.32% on this metric.
Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. Ralph Lauren's forward rate of return for was 20.52%.
The historical rank and industry rank for Ralph Lauren's Forward Rate of Return (Yacktman) % or its related term are showing as below:
RL'
s Forward Rate of Return (Yacktman) % Range Over the Past 10 Years
Min: -17.04 Med: -5.42 Max: 22.99
Current: 20.61
During the past 13 years, Ralph Lauren's highest Forward Rate of Return was 22.99. The lowest was -17.04. And the median was -5.42.
RL's Forward Rate of Return (Yacktman) % is ranked better than 80.32% of 818
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.965
vs RL: 20.61
Unlike the Earnings Yield %, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
Ralph Lauren (NYSE:RL) Forward Rate of Return (Yacktman) % Explanation
Unlike the Earnings Yield, the Forward Rate of Return uses the normalized Free Cash Flow of the past five years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.
For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over five years. The reason we use five years is to make it comparable to the growth rate.
Be Aware
In the Forward Rate of Return calculation, the growth rate is added directly to today's free cash flow yield. Therefore the calculation is reliable only if the company can grow at the same rate in the future as it did in the past. Investors should pay close attention to this when researching growth stocks. A more accurate measurement for return is Return on Capital.
Ralph Lauren Forward Rate of Return (Yacktman) % Related Terms
Ralph Lauren Forward Rate of Return (Yacktman) % Historical Data
* Premium members only.
The historical data trend for Ralph Lauren's Forward Rate of Return (Yacktman) % 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 Forward Rate of Return (Yacktman) % Chart
RL vs LEVI, VFC, KTB: Forward Rate of Return (Yacktman) % Comparison
For the Apparel Manufacturing subindustry, Ralph Lauren's Forward Rate of Return (Yacktman) %, along with its competitors' market caps and Forward Rate of Return (Yacktman) % 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 Forward Rate of Return (Yacktman) % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Ralph Lauren's Forward Rate of Return (Yacktman) % distribution charts can be found below:
* The bar in red indicates where Ralph Lauren's Forward Rate of Return (Yacktman) % falls into.
Ralph Lauren Forward Rate of Return (Yacktman) % Calculation
Forward Rate of Return is a concept that Don Yacktman uses in his investment approach. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation. He said in the interview (March 2012, when the S&P 500 was at about 1400):
If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.
The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).
Ralph Lauren's Forward Rate of Return of Jun. 2026 is
Forward Rate of Return
=
Normalized Free Cash Flow
/
Price
+
5-Year EBITDA Growth Rate
=
10.61066667
/
401.41
+
0.1788
=
20.52 %
* 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.
What does a Forward Rate of Return (Yacktman) % of 20.52% mean?
Ralph Lauren (RL) has a Forward Rate of Return (Yacktman) % of 20.52% as of Jun. 2026. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Ralph Lauren and its competitors. According to the industry distribution chart, Ralph Lauren ranks #161 out of 818 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 19.7%.
Is Ralph Lauren's Forward Rate of Return (Yacktman) % too high?
Ralph Lauren's current Forward Rate of Return (Yacktman) % is 20.52%. The Manufacturing - Apparel & Accessories industry median Forward Rate of Return (Yacktman) % is 4.97. Ralph Lauren's value of 20.52% is 313.3% above this industry median. Based on the distribution chart, Ralph Lauren ranks #161 out of 818 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, Ralph Lauren has a GF Score™ of 89/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ralph Lauren's Forward Rate of Return (Yacktman) % compare to LEVI and VFC?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Ralph Lauren ranks #161 out of 818 companies for Forward Rate of Return (Yacktman) %. This places Ralph Lauren in the top 20% of its industry — outperforming the majority of peers. The industry median Forward Rate of Return (Yacktman) % is 4.97. Ralph Lauren's value of 20.52% is 313.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward Rate of Return (Yacktman) % for a Manufacturing - Apparel & Accessories company?
The median Forward Rate of Return (Yacktman) % among Manufacturing - Apparel & Accessories companies is 4.97, based on 818 companies in the industry. Companies in the top quartile (top 25%) have a Forward Rate of Return (Yacktman) % significantly above this median, while those in the bottom quartile fall well below. However, Forward Rate of Return (Yacktman) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ralph Lauren's current Forward Rate of Return (Yacktman) % of 20.52% is 313.3% 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 Forward Rate of Return (Yacktman) % mean?
A high Forward Rate of Return (Yacktman) % can signal that a stock is expensive relative to its fundamentals. Yacktman's forward rate of return equals the sum of normalized free-cash-flow yield plus earnings growth. View historical data on Ralph Lauren and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Forward Rate of Return (Yacktman) % is 4.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ralph Lauren's current Forward Rate of Return (Yacktman) % is 20.52%. 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 Modestly Overvalued. The stock's GF Value™ is $301.89, compared to a current price of $381.95 — trading 26.5% above its estimated fair value. The current Forward Rate of Return (Yacktman) % is 20.52% and 313.3% above the Manufacturing - Apparel & Accessories industry median of 4.97. Ralph Lauren's overall GF Score™ is 89/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward Rate of Return (Yacktman) % calculated?
Forward Rate of Return (Yacktman) % is calculated from a company's financial statements. For Ralph Lauren (RL), the current Forward Rate of Return (Yacktman) % is 20.52% as of Jun. 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 $381.95 is trading 26.5% above its estimated GF Value™ of $301.89.
GuruFocus considers Ralph Lauren to be Modestly Overvalued.
Key valuation signals for RL:
Forward Rate of Return (Yacktman) %: 20.52%
GF Value™: $301.89 vs. price of $381.95 (26.5% above fair value)
Industry Position: 313.3% above the Manufacturing - Apparel & Accessories median (#161 of 818)
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.
89GF Score
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Forward Rate of Return (Yacktman) % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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