NYSE
According to Zyberno, Ralph Lauren Corporation (RL) shows a Value Trap signal — GREAT BUSINESS (76/100) with an apparent Margin of Safety of +39.5%, but a Brina Gap of -9.6% reveals the current price still assumes faster growth than the business can deliver.
According to Zyberno's DCF model, Ralph Lauren Corporation (RL) trades at $351.94 against an estimated intrinsic value per share of $581.24 — a +39.5% Margin of Safety based on Owner Earnings of $1.12B TTM, projected at 45.8% growth for 10 years with a 2.5% terminal growth rate. The Brina Gap of -9.6% weakens the case: based on the company's ROIC (29.4%) and reinvestment rate (-1.8%), the business can fundamentally grow at -0.5% — but the current enterprise value implies the market expects 9.1%. This places RL in the Value Trap quadrant of the Brina Matrix — a value-trap signal where the apparent discount is undermined by overpriced growth expectations. Zyberno's model translates this into a 5-year expected return of 32.7% annually.
Over the trailing twelve months, RL generated $1.12B in Owner Earnings. Capital was deployed as follows: $325.10M returned via share buybacks, $220.60M paid as dividends, $410.10M invested in capital expenditures. Reinvestment rate: -1.8%. Owner Earnings have grown at 45.8% annually over the trailing five years using log-linear regression.