Yahoo Finance What Are Ralph Lauren’s Current Valuations?
Fashion Forward: Ralph Lauren Ends Fiscal 2016 in Style
Ralph Lauren’s valuations
Currently, Ralph Lauren is trading at a one-year forward earnings multiple of 13.5x as of May 13, 2016, on the next 12 months’ EPS (earnings per share) of $6.37. At this valuation, the company is cheaper than Kate Spade (KATE), VF Corporation (VFC), and Coach (COH). They’re trading at a one-year forward PE (price-to-earnings ratio) of 27.2x, 18.4x, and 17.8x. However, the company is expensive compared to Michael Kors (KORS). It’s trading at a one-year forward PE ratio of 9.5x.
Ralph Lauren’s earnings multiples are comparable to PVH (PVH) and Hanesbrands (HBI). They’re trading at 12.8x and 13.7x, respectively. While Ralph Lauren expects flat EPS growth in the next 12 months, PVH is looking for an EPS decline of 7.8%. Hanesbrands is looking for 15.3% EPS growth over the next 12 months.
Wall Street analysts’ view on Ralph Lauren
Wall Street analysts predicted flat earnings growth for Ralph Lauren in fiscal 2017 despite an expected sales decline of 3.6%. However, analysts are positive on Ralph Lauren’s performance in fiscal 2018. They expect EPS growth of 10% based on sales growth of 2.6%.
Analysts seem to have a neutral to positive view on Ralph Lauren. Of the 23 analysts that rate Ralph Lauren, ten recommended a “buy,” 12 recommended a “hold,” and one recommended a “sell” on the stock. The company’s stock has been rated 2.6 on a scale of one (strong buy) to five (strong sell).
Wall Street analysts see an upside of 21.5% to Ralph Lauren’s current stock price of $85.5. The target price for the stock is $103.9.
ETF investors interested in getting exposure to Ralph Lauren can consider the First Trust Large Cap Core AlphaDEX Fund (FEX). FEX invests 0.42% of its portfolio in the company.
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