Is Ralph Lauren Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Ralph Lauren Corp. has moved from expensive to attractive, indicating a shift in perception towards the stock's value. The company appears to be undervalued, supported by a P/E ratio of 47, a Price to Book Value of 14.11, and an EV to EBITDA ratio of 29.87. In comparison, peers such as Skechers U.S.A., Inc. have a significantly lower P/E ratio of 12.84, while VF Corp. stands at 24.89, suggesting that Ralph Lauren may offer a more favorable investment opportunity relative to its industry counterparts.
Additionally, Ralph Lauren Corp. has demonstrated strong performance, with a year-to-date return of 41.90% compared to the S&P 500's 13.30%, and an impressive three-year return of 245.23% versus the S&P 500's 81.19%. This performance reinforces the attractiveness of the stock, suggesting that it may be undervalued in light of its recent returns and favorable valuation metrics.