TGM's two-stage DCF values Ralph Lauren Corporation (RL) between $193.00 and $309.39 depending on assumptions, with a base case of $241.99. Growth is taken from the company's own record (blend of 5-year revenue and FCF growth), fading to 2.5% long-run; the discount rate (10.8%) reflects its beta.
What would today's price require?
$339.09 is justified only if free cash flow grows about +19.9% a year (fading to 2.5% long-run) at a 10.8% required return — faster than the company has actually grown.
| Scenario | FCF growth (fading to 2.5%) | Discount | Value / share |
|---|---|---|---|
| Conservative | 7.9%/yr | 11.8% | $193.00 |
| Base case | 10.9%/yr | 10.8% | $241.99 |
| Optimistic | 13.9%/yr | 9.8% | $309.39 |
| Third-party model estimate (FMP) | independent reference · retrieved Sep 10, 2026 · assumptions not provided | $169.35 | |
The FMP figure is a third-party point estimate. Its cash-flow forecast, discount rate, terminal growth, and valuation date are not included in the stored response, so TGMCharts presents it only as a reference—not as an intrinsic-value conclusion or price target.
Current Price
$339.09
Market-Implied Growth
+19.9%/yr
vs +12.3% 5Y actual
Model Scenario Range
$193.00 – $309.39
model output — not a price target
Edit the assumptions to see how they change the estimated fair value. Opens seeded with TGM's data-driven base case for RL (growth from its own 5-year record, discount from its beta), so the sandbox starts where the scenarios above leave off. Illustrative model — not investment advice.
Base inputs: FCF $825.5M · 0.06B shares · net cash $537.4M
Estimated Fair Value
$241.99
-28.6% vs $339.09
How the estimated fair value shifts with the discount rate (WACC) and terminal growth, holding your 10.9%/yr FCF growth and 10-year horizon fixed. Green = above today's $339.09; red = below. Your current case is outlined.
| WACC ↓ / Terminal → | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
|---|---|---|---|---|---|
| 8.8% | $285 | $301 | $320 | $343 | $369 |
| 9.8% | $250 | $262 | $276 | $292 | $310 |
| 10.8% | $222 | $232 | $242 | $254 | $267 |
| 11.8% | $200 | $207 | $216 | $225 | $235 |
| 12.8% | $182 | $188 | $194 | $201 | $209 |
