Intrinsic value of Ralph Lauren Cl A - RL

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$78.92

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$78.92

 
Intrinsic value

$131.35

 
Up/down potential

+66%

 
Rating

str. buy

 
Value-price divergence* premium content

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*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of RL stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 6.5

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -2.82
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  7,405
  7,553
  7,727
  7,925
  8,148
  8,395
  8,666
  8,962
  9,281
  9,625
  9,995
  10,390
  10,812
  11,260
  11,738
  12,244
  12,781
  13,349
  13,949
  14,584
  15,254
  15,961
  16,707
  17,493
  18,321
  19,193
  20,111
  21,078
  22,095
  23,165
  24,290
Variable operating expenses, $m
 
  6,524
  6,672
  6,841
  7,031
  7,241
  7,472
  7,724
  7,996
  8,289
  8,603
  8,848
  9,207
  9,589
  9,996
  10,427
  10,884
  11,368
  11,879
  12,420
  12,990
  13,592
  14,227
  14,897
  15,602
  16,345
  17,127
  17,950
  18,816
  19,727
  20,686
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  6,823
  6,524
  6,672
  6,841
  7,031
  7,241
  7,472
  7,724
  7,996
  8,289
  8,603
  8,848
  9,207
  9,589
  9,996
  10,427
  10,884
  11,368
  11,879
  12,420
  12,990
  13,592
  14,227
  14,897
  15,602
  16,345
  17,127
  17,950
  18,816
  19,727
  20,686
Operating income, $m
  582
  1,029
  1,055
  1,084
  1,117
  1,154
  1,194
  1,238
  1,285
  1,337
  1,391
  1,542
  1,604
  1,671
  1,742
  1,817
  1,897
  1,981
  2,070
  2,164
  2,264
  2,369
  2,479
  2,596
  2,719
  2,848
  2,984
  3,128
  3,279
  3,438
  3,605
EBITDA, $m
  892
  1,330
  1,360
  1,395
  1,435
  1,478
  1,526
  1,578
  1,634
  1,695
  1,760
  1,829
  1,904
  1,983
  2,067
  2,156
  2,250
  2,350
  2,456
  2,568
  2,686
  2,810
  2,942
  3,080
  3,226
  3,379
  3,541
  3,711
  3,890
  4,079
  4,277
Interest expense (income), $m
  15
  30
  32
  34
  36
  38
  41
  44
  47
  51
  55
  59
  63
  68
  73
  78
  84
  90
  96
  102
  109
  117
  125
  133
  142
  151
  160
  170
  181
  192
  204
Earnings before tax, $m
  552
  999
  1,023
  1,051
  1,081
  1,116
  1,153
  1,194
  1,238
  1,286
  1,337
  1,483
  1,541
  1,603
  1,669
  1,739
  1,813
  1,891
  1,974
  2,062
  2,154
  2,252
  2,355
  2,463
  2,577
  2,698
  2,824
  2,958
  3,098
  3,245
  3,401
Tax expense, $m
  156
  270
  276
  284
  292
  301
  311
  322
  334
  347
  361
  400
  416
  433
  451
  470
  490
  511
  533
  557
  582
  608
  636
  665
  696
  728
  763
  799
  836
  876
  918
Net income, $m
  396
  729
  747
  767
  789
  814
  842
  872
  904
  939
  976
  1,083
  1,125
  1,170
  1,218
  1,269
  1,323
  1,381
  1,441
  1,505
  1,573
  1,644
  1,719
  1,798
  1,881
  1,969
  2,062
  2,159
  2,261
  2,369
  2,482

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,085
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  6,213
  5,231
  5,351
  5,489
  5,643
  5,814
  6,002
  6,206
  6,427
  6,666
  6,922
  7,195
  7,487
  7,798
  8,129
  8,479
  8,851
  9,244
  9,660
  10,100
  10,564
  11,053
  11,570
  12,114
  12,687
  13,291
  13,927
  14,597
  15,301
  16,042
  16,822
Adjusted assets (=assets-cash), $m
  5,128
  5,231
  5,351
  5,489
  5,643
  5,814
  6,002
  6,206
  6,427
  6,666
  6,922
  7,195
  7,487
  7,798
  8,129
  8,479
  8,851
  9,244
  9,660
  10,100
  10,564
  11,053
  11,570
  12,114
  12,687
  13,291
  13,927
  14,597
  15,301
  16,042
  16,822
Revenue / Adjusted assets
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
  1.444
Average production assets, $m
  1,765
  1,798
  1,839
  1,886
  1,939
  1,998
  2,063
  2,133
  2,209
  2,291
  2,379
  2,473
  2,573
  2,680
  2,794
  2,914
  3,042
  3,177
  3,320
  3,471
  3,630
  3,799
  3,976
  4,163
  4,360
  4,568
  4,786
  5,017
  5,259
  5,513
  5,781
Working capital, $m
  1,855
  921
  943
  967
  994
  1,024
  1,057
  1,093
  1,132
  1,174
  1,219
  1,268
  1,319
  1,374
  1,432
  1,494
  1,559
  1,629
  1,702
  1,779
  1,861
  1,947
  2,038
  2,134
  2,235
  2,342
  2,454
  2,571
  2,696
  2,826
  2,963
Total debt, $m
  1,000
  911
  966
  1,028
  1,099
  1,176
  1,262
  1,355
  1,455
  1,564
  1,680
  1,805
  1,938
  2,079
  2,229
  2,389
  2,558
  2,737
  2,926
  3,126
  3,337
  3,560
  3,795
  4,043
  4,304
  4,579
  4,868
  5,173
  5,493
  5,830
  6,185
Total liabilities, $m
  2,469
  2,380
  2,435
  2,497
  2,568
  2,645
  2,731
  2,824
  2,924
  3,033
  3,149
  3,274
  3,407
  3,548
  3,698
  3,858
  4,027
  4,206
  4,395
  4,595
  4,806
  5,029
  5,264
  5,512
  5,773
  6,048
  6,337
  6,642
  6,962
  7,299
  7,654
Total equity, $m
  3,744
  2,851
  2,916
  2,991
  3,075
  3,169
  3,271
  3,382
  3,503
  3,633
  3,772
  3,921
  4,081
  4,250
  4,430
  4,621
  4,824
  5,038
  5,265
  5,504
  5,757
  6,024
  6,305
  6,602
  6,915
  7,244
  7,590
  7,955
  8,339
  8,743
  9,168
Total liabilities and equity, $m
  6,213
  5,231
  5,351
  5,488
  5,643
  5,814
  6,002
  6,206
  6,427
  6,666
  6,921
  7,195
  7,488
  7,798
  8,128
  8,479
  8,851
  9,244
  9,660
  10,099
  10,563
  11,053
  11,569
  12,114
  12,688
  13,292
  13,927
  14,597
  15,301
  16,042
  16,822
Debt-to-equity ratio
  0.267
  0.320
  0.330
  0.340
  0.360
  0.370
  0.390
  0.400
  0.420
  0.430
  0.450
  0.460
  0.470
  0.490
  0.500
  0.520
  0.530
  0.540
  0.560
  0.570
  0.580
  0.590
  0.600
  0.610
  0.620
  0.630
  0.640
  0.650
  0.660
  0.670
  0.670
Adjusted equity ratio
  0.519
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545
  0.545

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  396
  729
  747
  767
  789
  814
  842
  872
  904
  939
  976
  1,083
  1,125
  1,170
  1,218
  1,269
  1,323
  1,381
  1,441
  1,505
  1,573
  1,644
  1,719
  1,798
  1,881
  1,969
  2,062
  2,159
  2,261
  2,369
  2,482
Depreciation, amort., depletion, $m
  310
  301
  306
  311
  317
  324
  332
  340
  349
  358
  368
  288
  299
  312
  325
  339
  354
  369
  386
  404
  422
  442
  462
  484
  507
  531
  557
  583
  611
  641
  672
Funds from operations, $m
  1,129
  1,030
  1,052
  1,078
  1,107
  1,139
  1,173
  1,211
  1,252
  1,297
  1,344
  1,370
  1,424
  1,482
  1,543
  1,608
  1,677
  1,750
  1,827
  1,909
  1,995
  2,085
  2,181
  2,282
  2,388
  2,500
  2,618
  2,742
  2,873
  3,010
  3,155
Change in working capital, $m
  122
  18
  21
  24
  27
  30
  33
  36
  39
  42
  45
  48
  51
  55
  58
  62
  65
  69
  73
  77
  82
  86
  91
  96
  101
  106
  112
  118
  124
  131
  137
Cash from operations, $m
  1,007
  1,074
  1,031
  1,054
  1,080
  1,108
  1,140
  1,175
  1,213
  1,255
  1,299
  1,322
  1,373
  1,427
  1,485
  1,546
  1,612
  1,681
  1,754
  1,831
  1,913
  1,999
  2,090
  2,186
  2,287
  2,394
  2,506
  2,624
  2,749
  2,880
  3,017
Maintenance CAPEX, $m
  0
  -205
  -209
  -214
  -219
  -226
  -232
  -240
  -248
  -257
  -266
  -277
  -288
  -299
  -312
  -325
  -339
  -354
  -369
  -386
  -404
  -422
  -442
  -462
  -484
  -507
  -531
  -557
  -583
  -611
  -641
New CAPEX, $m
  -418
  -33
  -41
  -47
  -53
  -59
  -65
  -70
  -76
  -82
  -88
  -94
  -100
  -107
  -114
  -121
  -128
  -135
  -143
  -151
  -159
  -168
  -177
  -187
  -197
  -208
  -219
  -230
  -242
  -255
  -268
Cash from investing activities, $m
  -583
  -238
  -250
  -261
  -272
  -285
  -297
  -310
  -324
  -339
  -354
  -371
  -388
  -406
  -426
  -446
  -467
  -489
  -512
  -537
  -563
  -590
  -619
  -649
  -681
  -715
  -750
  -787
  -825
  -866
  -909
Free cash flow, $m
  424
  836
  781
  793
  807
  824
  843
  865
  889
  916
  945
  951
  985
  1,021
  1,060
  1,101
  1,145
  1,192
  1,242
  1,294
  1,350
  1,409
  1,471
  1,537
  1,606
  1,679
  1,756
  1,838
  1,923
  2,014
  2,108
Issuance/(repayment) of debt, $m
  155
  48
  55
  63
  70
  78
  85
  93
  101
  108
  116
  125
  133
  141
  150
  160
  169
  179
  189
  200
  211
  223
  235
  248
  261
  275
  289
  305
  320
  337
  355
Issuance/(repurchase) of shares, $m
  -466
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -303
  48
  55
  63
  70
  78
  85
  93
  101
  108
  116
  125
  133
  141
  150
  160
  169
  179
  189
  200
  211
  223
  235
  248
  261
  275
  289
  305
  320
  337
  355
Total cash flow (excl. dividends), $m
  126
  884
  836
  855
  877
  902
  929
  958
  990
  1,024
  1,061
  1,076
  1,118
  1,163
  1,210
  1,261
  1,314
  1,371
  1,431
  1,494
  1,561
  1,632
  1,706
  1,784
  1,867
  1,954
  2,046
  2,142
  2,244
  2,351
  2,463
Retained Cash Flow (-), $m
  147
  -55
  -66
  -75
  -84
  -93
  -102
  -111
  -121
  -130
  -139
  -149
  -159
  -169
  -180
  -191
  -203
  -214
  -227
  -240
  -253
  -267
  -281
  -297
  -313
  -329
  -347
  -365
  -384
  -404
  -425
Prev. year cash balance distribution, $m
 
  948
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  1,777
  770
  780
  793
  809
  827
  847
  870
  894
  922
  927
  959
  993
  1,030
  1,070
  1,112
  1,157
  1,204
  1,255
  1,308
  1,365
  1,425
  1,488
  1,555
  1,625
  1,699
  1,778
  1,860
  1,947
  2,038
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  1,704
  705
  679
  653
  627
  600
  572
  543
  514
  483
  440
  409
  378
  346
  314
  283
  252
  222
  193
  166
  141
  118
  98
  79
  63
  50
  38
  29
  21
  15
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Ralph Lauren Corporation designs, markets, and distributes lifestyle products worldwide. The company operates in three segments: Wholesale, Retail, and Licensing. It offers apparel, including a range of men’s, women’s, and children’s clothing; accessories, which comprise footwear, eyewear, watches, fine jewelry, hats, belts, and leather goods, such as handbags and luggage; home products consisting of bedding and bath products, furniture, fabrics and wallpapers, lightings, paints, tabletops, and giftware; and fragrances. The company sells apparel and accessories under the Ralph Lauren Collection, Purple Label, Black Label, Polo Ralph Lauren, Polo Sport, Double RL, RLX Ralph Lauren, Lauren Ralph Lauren, Ralph by Ralph Lauren, Polo and RLX Golf, Ralph Lauren Children, Denim & Supply Ralph Lauren, Chaps, Club Monaco, American Living, and other brand names; women's fragrances under the Safari, Ralph Lauren Blue, Lauren, Romance, RALPH collection, and Big Pony collection brand names; and men's fragrances under the Safari, Polo Sport, Polo Green, Polo Blue, Polo Blue Sport, Purple Label, Polo Black, Double Black, Big Pony collection, Polo Red collection, and Polo Supreme Oud brand names. Ralph Lauren Corporation sells its products to department stores, specialty stores, and golf and pro shops, as well as through its retail stores, concession-based shop-within-shops, and its e-commerce sites. The company also sells its apparel, home, and other products through licensing alliances. As of April 2, 2016, it operated 493 directly-operated freestanding stores and 583 concession-based shop-within-shops. Ralph Lauren Corporation was founded in 1967 and is based in New York, New York.

FINANCIAL RATIOS  of  Ralph Lauren Cl A (RL)

Valuation Ratios
P/E Ratio 16.5
Price to Sales 0.9
Price to Book 1.7
Price to Tangible Book
Price to Cash Flow 6.5
Price to Free Cash Flow 11.1
Growth Rates
Sales Growth Rate -2.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 6.9%
Cap. Spend. - 3 Yr. Gr. Rate 8.7%
Financial Strength
Quick Ratio 8
Current Ratio 0
LT Debt to Equity 23.1%
Total Debt to Equity 26.7%
Interest Coverage 38
Management Effectiveness
Return On Assets 6.6%
Ret/ On Assets - 3 Yr. Avg. 10.7%
Return On Total Capital 8.4%
Ret/ On T. Cap. - 3 Yr. Avg. 13.8%
Return On Equity 10.4%
Return On Equity - 3 Yr. Avg. 16%
Asset Turnover 1.2
Profitability Ratios
Gross Margin 56.5%
Gross Margin - 3 Yr. Avg. 57.3%
EBITDA Margin 11.8%
EBITDA Margin - 3 Yr. Avg. 15.8%
Operating Margin 7.9%
Oper. Margin - 3 Yr. Avg. 12.2%
Pre-Tax Margin 7.5%
Pre-Tax Margin - 3 Yr. Avg. 11.7%
Net Profit Margin 5.3%
Net Profit Margin - 3 Yr. Avg. 8.3%
Effective Tax Rate 28.3%
Eff/ Tax Rate - 3 Yr. Avg. 28.8%
Payout Ratio 42.9%

RL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the RL stock intrinsic value calculation we used $7405 million for the last fiscal year's total revenue generated by Ralph Lauren Cl A. The default revenue input number comes from 2016 income statement of Ralph Lauren Cl A. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our RL stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for RL is calculated based on our internal credit rating of Ralph Lauren Cl A, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Ralph Lauren Cl A.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of RL stock the variable cost ratio is equal to 86.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for RL stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Ralph Lauren Cl A.

Corporate tax rate of 27% is the nominal tax rate for Ralph Lauren Cl A. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the RL stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for RL are equal to 23.8%.

Life of production assets of 8.6 years is the average useful life of capital assets used in Ralph Lauren Cl A operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for RL is equal to 12.2%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $3744 million for Ralph Lauren Cl A - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 81.965 million for Ralph Lauren Cl A is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Ralph Lauren Cl A at the current share price and the inputted number of shares is $6.5 billion.


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COMPANY NEWS

▶ Ralph Lauren confirms it will lay off 100+ workers at Triad facilities   [Apr-21-17 03:37PM  American City Business Journals]
▶ Stocks That Fell to 3-Year Lows in the Week of April 14   [Apr-16-17 05:02PM  GuruFocus.com]
▶ Longleaf Partners Comments on Ralph Lauren   [Apr-14-17 06:11PM  GuruFocus.com]
▶ Longleaf Partners 1st Quarter Commentary   [05:50PM  GuruFocus.com]
▶ Ralph Lauren, Local Lincoln Dealer Support OReilly Online   [Apr-09-17 06:45AM  24/7 Wall St.]
▶ Food & retail stocks in today's trader blitz   [Apr-06-17 01:37PM  CNBC Videos]
▶ Ralph Lauren Drops 4.5% after Announcing Restructuring Moves   [Apr-05-17 06:05PM  Market Realist]
▶ 15 Most Expensive Perfume Brands in The World   [11:39AM  Insider Monkey]
▶ Ralph Lauren to shut down Fifth Avenue Polo store   [Apr-04-17 06:01PM  Associated Press]
▶ Top 10 Apparel Brands in the World   [Mar-21-17 03:05PM  at Insider Monkey]
▶ Ralph Lauren Corporation Declares Quarterly Dividend   [Mar-10-17 04:05PM  Business Wire]
▶ 2 Awful Retail Stocks for Retirees   [Feb-22-17 09:48AM  at Motley Fool]
▶ [$$] US retailers struggle to come back into vogue   [Feb-17-17 11:24AM  at Financial Times]
▶ Deckers Outdoor: Heading for $70?   [11:21AM  at Barrons.com]
▶ Michael Kors: On Sale? Yes. A Bargain? No Way.   [Feb-07-17 10:46AM  at Barrons.com]
▶ Ralph Lauren CEO Stefan Larsson Steps Down   [09:52AM  at Investopedia]
▶ What Investors Missed in the Market Last Week   [Feb-05-17 09:41AM  at Motley Fool]
▶ The Biggest Loser: Ralph Lauren Sinks 12%   [05:37PM  at Barrons.com]
▶ Ralph Lauren: Lauren vs Larsson   [04:42PM  at Barrons.com]
▶ CEO Stefan Larsson Steps Down from Ralph Lauren   [03:23PM  at Investopedia]
Stock chart of RL Financial statements of RL
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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