RL (Ralph Lauren) 1-Year Sharpe Ratio: 1.79 (As of Jul. 17, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

RL Ralph Lauren Corp RL
86 GF Score
Price $381.35
GF Value $265.10
Valuation Significantly Overvalued
! 6 Warning Signs
View Full Analysis

What is Ralph Lauren 1-Year Sharpe Ratio?

Ralph Lauren RL -1.74% 86 1-Year Sharpe Ratio is 1.79 as of Jul. 17, 2026. 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.

The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-07-17), Ralph Lauren's 1-Year Sharpe Ratio is 1.79.

Ralph Lauren  (NYSE:RL) 1-Year Sharpe Ratio Explanation

The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.

The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.

Ralph Lauren 1-Year Sharpe Ratio Related Terms

RL vs LEVI, VFC, KTB: 1-Year Sharpe Ratio Comparison

For the Apparel Manufacturing subindustry, Ralph Lauren's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe Ratio 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 1-Year Sharpe Ratio vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Ralph Lauren's 1-Year Sharpe Ratio distribution charts can be found below:

* The bar in red indicates where Ralph Lauren's 1-Year Sharpe Ratio falls into.


RL
86GF Score
Ralph Lauren Corp RL
1-Year Sharpe Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Ralph Lauren 1-Year Sharpe Ratio Calculation

The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.

Frequently Asked Questions Learn more about 1-Year Sharpe Ratio →
What does a 1-Year Sharpe Ratio of 1.79 mean?
Ralph Lauren (RL) has a 1-Year Sharpe Ratio of 1.79 as of Jul. 17, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Ralph Lauren and its competitors.
Is Ralph Lauren's 1-Year Sharpe Ratio too high?
Ralph Lauren's current 1-Year Sharpe Ratio is 1.79. 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 1-Year Sharpe Ratio compare to LEVI and VFC?
Ralph Lauren's 1-Year Sharpe Ratio of 1.79 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 1-Year Sharpe Ratio for a Manufacturing - Apparel & Accessories company?
A good 1-Year Sharpe Ratio depends on the Manufacturing - Apparel & Accessories industry context. However, 1-Year Sharpe Ratio 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 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Ralph Lauren and its competitors. Ralph Lauren's current 1-Year Sharpe Ratio is 1.79. 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 1-Year Sharpe Ratio is 1.79. 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 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For Ralph Lauren (RL), the current 1-Year Sharpe Ratio is 1.79 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:

  • 1-Year Sharpe Ratio: 1.79
  • GF Value™: $265.10 vs. price of $381.35 (43.9% above fair value)
  • GF Score™: 86/100 with 6 warning signs

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.

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.
86GF Score

Get the complete analysis for RL

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

$381.35
Price
$265.10
GF Value