Ralph LaurenMEX:RL 29 ROC (Joel Greenblatt) % is 35.58% as of Mar. 2026, which is 1% below its 10-year median of 35.83. GuruFocus rates MEX:RL with a GF Score™ of 29/100 and a GF Value™ of MXN3,835.12 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,057 Manufacturing - Apparel & Accessories companies, Ralph Lauren ranks better than 93.66% on this metric.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Ralph Lauren's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 35.58%.
The historical rank and industry rank for Ralph Lauren's ROC (Joel Greenblatt) % or its related term are showing as below:
MEX:RL'
s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -4.79 Med: 35.83 Max: 56.8
Current: 54.16
During the past 13 years, Ralph Lauren's highest ROC (Joel Greenblatt) % was 56.80%. The lowest was -4.79%. And the median was 35.83%.
MEX:RL's ROC (Joel Greenblatt) % is ranked better than 93.66% of 1057
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 8.42
vs MEX:RL: 54.16
Ralph Lauren's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.
Ralph Lauren (MEX:RL) ROC (Joel Greenblatt) % Explanation
The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.
Ralph Lauren ROC (Joel Greenblatt) % Related Terms
Ralph Lauren ROC (Joel Greenblatt) % Historical Data
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The historical data trend for Ralph Lauren's ROC (Joel Greenblatt) % 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.
MEX:RL vs LEVI, VFC, KTB: ROC (Joel Greenblatt) % Comparison
For the Apparel Manufacturing subindustry, Ralph Lauren's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Ralph Lauren's ROC (Joel Greenblatt) % distribution charts can be found below:
* The bar in red indicates where Ralph Lauren's ROC (Joel Greenblatt) % falls into.
Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:
EBIT stands for Earnings Before Interest and Taxes.
Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.
GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.
Note:
The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.
* 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 ROC (Joel Greenblatt) % of 35.58% mean?
Ralph Lauren (MEX:RL) has a ROC (Joel Greenblatt) % of 35.58% as of Mar. 2026. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Ralph Lauren and its competitors. This is near median its historical median of 35.83. According to the industry distribution chart, Ralph Lauren ranks #67 out of 1057 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 6.3%.
Is Ralph Lauren's ROC (Joel Greenblatt) % too high?
Ralph Lauren's current ROC (Joel Greenblatt) % of 35.58% is near median its 10-year median of 35.83. The Manufacturing - Apparel & Accessories industry median ROC (Joel Greenblatt) % is 8.42. Ralph Lauren's value of 35.58% is 322.6% above this industry median. Based on the distribution chart, Ralph Lauren ranks #67 out of 1057 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 29/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ralph Lauren's ROC (Joel Greenblatt) % compare to LEVI and VFC?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Ralph Lauren ranks #67 out of 1057 companies for ROC (Joel Greenblatt) %. This places Ralph Lauren in the top 6% of its industry — outperforming the majority of peers. The industry median ROC (Joel Greenblatt) % is 8.42. Ralph Lauren's value of 35.58% is 322.6% above this benchmark. While the company's 10-year median is 35.83 vs. the industry median of 8.42, 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 ROC (Joel Greenblatt) % for a Manufacturing - Apparel & Accessories company?
The median ROC (Joel Greenblatt) % among Manufacturing - Apparel & Accessories companies is 8.42, based on 1,057 companies in the industry. Companies in the top quartile (top 25%) have a ROC (Joel Greenblatt) % significantly above this median, while those in the bottom quartile fall well below. However, ROC (Joel Greenblatt) % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ralph Lauren's current ROC (Joel Greenblatt) % of 35.58% is 322.6% 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 ROC (Joel Greenblatt) % mean?
A high ROC (Joel Greenblatt) % can signal that a stock is expensive relative to its fundamentals. Joel Greenblatt's return on capital is the ratio of EBIT to average fixed assets and net working capital. View historical data on Ralph Lauren and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROC (Joel Greenblatt) % is 8.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ralph Lauren's current ROC (Joel Greenblatt) % is 35.58%, which is near median its own 10-year median of 35.83. 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 (MEX:RL) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN3,835.12, compared to a current price of MXN5,774.00 — trading 50.6% above its estimated fair value. The current ROC (Joel Greenblatt) % is 35.58%, which is near median its 10-year median of 35.83 and 322.6% above the Manufacturing - Apparel & Accessories industry median of 8.42. Ralph Lauren's overall GF Score™ is 29/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC (Joel Greenblatt) % calculated?
ROC (Joel Greenblatt) % is calculated from a company's financial statements. For Ralph Lauren (MEX:RL), the current ROC (Joel Greenblatt) % is 35.58% 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 (MEX:RL) Overvalued in 2026?
Based on GuruFocus' analysis, Ralph Lauren stock appears to be overvalued.
The current stock price of MXN5,774.00 is trading 50.6% above its estimated GF Value™ of MXN3,835.12.
GuruFocus considers Ralph Lauren to be Significantly Overvalued.
Key valuation signals for MEX:RL:
ROC (Joel Greenblatt) %: 35.58% (near median its 10-year median of 35.83)
GF Value™: MXN3,835.12 vs. price of MXN5,774.00 (50.6% above fair value)
Industry Position: 322.6% above the Manufacturing - Apparel & Accessories median (#67 of 1057)
No single metric tells the full story. See the MEX: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.
29GF Score
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