Discounted Cash Flow

Ralph Lauren Corp.

RL · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2017 $6.7b $-99.3m $668.3m -1.5% $-1.20
2018 $6.2b (-7.1%) $162.8m (263.9%) $813.5m (21.7%) 2.6% (276.4%) $1.99 (265.8%)
2019 $6.3b (2.1%) $430.9m (164.7%) $586.1m (-28.0%) 6.8% (159.2%) $5.35 (168.8%)
2020 $6.2b (-2.4%) $384.3m (-10.8%) $484.3m (-17.4%) 6.2% (-8.6%) $5.07 (-5.2%)
2021 $4.4b (-28.6%) $-121.1m (-131.5%) $273.1m (-43.6%) -2.8% (-144.1%) $-1.65 (-132.5%)
2022 $6.2b (41.3%) $600.1m (595.5%) $549.0m (101.0%) 9.7% (450.7%) $8.22 (598.2%)
2023 $6.4b (3.6%) $522.7m (-12.9%) $193.5m (-64.8%) 8.1% (-15.9%) $7.72 (-6.1%)
2024 $6.6b (2.9%) $646.3m (23.6%) $904.9m (367.6%) 9.7% (20.1%) $9.91 (28.4%)
2025 $7.1b (6.7%) $742.9m (14.9%) $1.0b (12.6%) 10.5% (7.7%) $11.86 (19.7%)
2026 $8.1b (14.6%) $941.1m (26.7%) $704.9m (-30.8%) 11.6% (10.5%) $15.42 (30.0%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Values abbreviated: b = billions, m = millions, k = thousands.

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model