RL PE Ratio 2026
Ralph Lauren Corp Price to Earnings Analysis
Current P/E Ratio
24.88
Stock Price
$363.90
EPS (TTM)
$15.12
Valuation
Overvalued
PE Ratio Breakdown
Trailing P/E (TTM)
24.88
Based on last 12 months earnings
Consumer Discretionary Industry Avg
20.00
RL is 24% above industry
PEG Ratio
124.41
Potentially overvalued
What Does RL P/E Ratio Mean?
Current Valuation
At a P/E ratio of 24.88, investors are paying $24.88 for every $1 of RL's annual earnings. This moderate P/E is typical for established companies with steady earnings.
Industry Comparison
Compared to the Consumer Discretionary industry average P/E of 20, RL is trading at a premium. This could be justified by superior growth, profitability, or competitive position.
PE Ratio Calculator
How P/E ratio changes with different stock prices:
At $291.12
P/E: 19.25
20% lower
At $327.51
P/E: 21.66
10% lower
At $400.29
P/E: 26.47
10% higher
At $436.68
P/E: 28.88
20% higher
Get Complete RL Valuation Analysis
DCF model, comparable companies, and AI-powered insights
Frequently Asked Questions
What is RL PE ratio?
RL (Ralph Lauren Corp) has a price-to-earnings (P/E) ratio of 24.88. This means investors are paying $24.88 for every $1 of RL's annual earnings. The P/E ratio is a key valuation metric used to assess whether a stock is overvalued or undervalued relative to its earnings.
What is a good PE ratio?
A "good" P/E ratio depends on the industry and growth prospects. Generally, a P/E ratio between 15-25 is considered reasonable for mature companies. Growth stocks often trade at higher P/E ratios (30-50+) due to expected future earnings growth. Value stocks typically have lower P/E ratios (below 15). Compare RL's P/E of 24.88 to its industry average and historical range.
Is RL overvalued based on PE ratio?
RL's P/E ratio of 24.88 is above the Consumer Discretionary industry average of approximately 20. This suggests the stock may be trading at a premium, though high P/E ratios can be justified by strong growth prospects.
What is the difference between forward and trailing PE ratio?
The trailing P/E ratio uses earnings from the past 12 months (historical data), while the forward P/E ratio uses projected earnings for the next 12 months (future estimates). RL's trailing P/E is 24.88. Forward P/E is often more useful for growth companies as it reflects expected future performance.
How do you calculate PE ratio?
P/E ratio is calculated by dividing the stock price by earnings per share (EPS). Formula: P/E = Stock Price / EPS. For RL, with a current price of $363.90 and EPS of $15.12, the P/E ratio is 24.07. A higher P/E means investors pay more per dollar of earnings.
What is PEG ratio and how does it relate to PE?
The PEG (Price/Earnings to Growth) ratio adjusts the P/E ratio for earnings growth. It's calculated as P/E / Earnings Growth Rate. RL's PEG ratio is approximately 124.41. A PEG below 1.0 suggests the stock may be undervalued relative to its growth rate, while above 2.0 may indicate overvaluation.