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Ralph Lauren (FRA:PRL) Cyclically Adjusted Price-to-FCF : 20.00 (As of May. 19, 2024)


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What is Ralph Lauren Cyclically Adjusted Price-to-FCF?

As of today (2024-05-19), Ralph Lauren's current share price is €151.80. Ralph Lauren's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 was €7.59. Ralph Lauren's Cyclically Adjusted Price-to-FCF for today is 20.00.

The historical rank and industry rank for Ralph Lauren's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

FRA:PRL' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 8.24   Med: 15.43   Max: 35.14
Current: 20.05

During the past years, Ralph Lauren's highest Cyclically Adjusted Price-to-FCF was 35.14. The lowest was 8.24. And the median was 15.43.

FRA:PRL's Cyclically Adjusted Price-to-FCF is ranked worse than
53.53% of 368 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 18.08 vs FRA:PRL: 20.05

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Ralph Lauren's adjusted free cash flow per share data for the three months ended in Dec. 2023 was €7.817. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is €7.59 for the trailing ten years ended in Dec. 2023.

Shiller PE for Stocks: The True Measure of Stock Valuation


Ralph Lauren Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Ralph Lauren's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ralph Lauren Cyclically Adjusted Price-to-FCF Chart

Ralph Lauren Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.33 9.03 16.57 14.15 15.21

Ralph Lauren Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.78 15.21 15.86 14.15 17.22

Competitive Comparison of Ralph Lauren's Cyclically Adjusted Price-to-FCF

For the Apparel Manufacturing subindustry, Ralph Lauren's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ralph Lauren's Cyclically Adjusted Price-to-FCF Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Ralph Lauren's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Ralph Lauren's Cyclically Adjusted Price-to-FCF falls into.



Ralph Lauren Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Ralph Lauren's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=151.80/7.59
=20.00

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Ralph Lauren's Cyclically Adjusted FCF per Share for the quarter that ended in Dec. 2023 is calculated as:

For example, Ralph Lauren's adjusted Free Cash Flow per Share data for the three months ended in Dec. 2023 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Dec. 2023 (Change)*Current CPI (Dec. 2023)
=7.817/129.4194*129.4194
=7.817

Current CPI (Dec. 2023) = 129.4194.

Ralph Lauren Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201403 0.410 99.695 0.532
201406 2.693 100.560 3.466
201409 -2.010 100.428 -2.590
201412 4.474 99.070 5.845
201503 -0.924 99.621 -1.200
201506 2.688 100.684 3.455
201509 -1.036 100.392 -1.336
201512 3.897 99.792 5.054
201603 0.763 100.470 0.983
201606 1.766 101.688 2.248
201609 -1.051 101.861 -1.335
201612 6.350 101.863 8.068
201703 0.494 102.862 0.622
201706 3.153 103.349 3.948
201709 0.714 104.136 0.887
201712 4.818 104.011 5.995
201803 -0.144 105.290 -0.177
201806 1.935 106.317 2.355
201809 -0.712 106.507 -0.865
201812 4.482 105.998 5.472
201903 0.578 107.251 0.697
201906 1.639 108.070 1.963
201909 -0.868 108.329 -1.037
201912 5.444 108.420 6.498
202003 -0.575 108.902 -0.683
202006 -1.113 108.767 -1.324
202009 0.289 109.815 0.341
202012 3.530 109.897 4.157
202103 0.220 111.754 0.255
202106 2.415 114.631 2.727
202109 2.048 115.734 2.290
202112 3.660 117.630 4.027
202203 -2.001 121.301 -2.135
202206 0.078 125.017 0.081
202209 -1.287 125.227 -1.330
202212 4.512 125.222 4.663
202303 -0.656 127.348 -0.667
202306 3.165 128.729 3.182
202309 0.420 129.860 0.419
202312 7.817 129.419 7.817

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Ralph Lauren  (FRA:PRL) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Ralph Lauren Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Ralph Lauren's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Ralph Lauren (FRA:PRL) Business Description

Traded in Other Exchanges
Address
650 Madison Avenue, New York, NY, USA, 10022
Founded by designer Ralph Lauren in 1967 in New York City, Ralph Lauren Corp. designs, markets, and distributes lifestyle products in North America, Europe, and Asia. Its products include apparel, footwear, eyewear, jewelry, handbags, home goods, and fragrances. The company's brands include Ralph Lauren Collection, Polo Ralph Lauren, and Lauren Ralph Lauren. Distribution channels for Ralph Lauren include wholesale (department stores and specialty stores), retail (company-owned retail stores and e-commerce), and licensing.

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