The fair value of requested stock should be $99.54
* Note: Prices are in Million (M) USD.
These criteria used Company’s Cash, EBITDA and Debt balance to determines its fair value:
Cash : $2,140 M
Debt : $2,680 M
EBITDA : $1,110 M
Net Debt (Debt - Cash): $540 M
Since Net Debt is covered by EBITDA within 1 year, 3 points assigned.
This criteria used industry in which company operates:
Sector: Consumer Cyclical
Industry: Apparel Manufacturing
Based on industry, 3 points assigned.
This criteria used Company’s Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 17.18
Since Forward PE Ratio is between 15 - 20, 3 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $538 M
Average Revenue: $5,858 M
Free Cash Flow to Revenue : 9 %
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-03-31): $6,631 M
Revenue 4 Years Ago (2020-03-31): $6,160 M
Revenue Growth: 2%
Since Revenue Growth is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-03-31): $67 M
Share Count 5 Years Ago (2020-03-31): $77 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Earnings Per Share (EPS): $12.80
Dividend Per Share (DPS): $3
Payout Ratio: 25%
Dividend Yield: 2%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 1, 1 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 15%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $220
52-Week Low: $154
Threshold Price (15% Above 52-Week Low): $177
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $12,224 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the calculated score, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 22 points to above Ralph Lauren Corp Class A (RL) stock.
Twenty Years Avg PE 18, Fair Value PE 15, Industry Based PE is 15 and Growth based PE is 15. Based on these all values average assigned is 15.75.
Value-Trades has assined P/E value 15.75. Since current year earning per share is $12.80.
The fair value of Ralph Lauren Corp Class A (RL) stock should be (15.75 x $12.80) = $201.60
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