Stock Survey: Ralph Lauren Corporation (NYSE:RL)

Investors might be taking note of Return on Invested Capital (ROIC) data for Ralph Lauren Corporation (NYSE:RL). ROIC is a financial metric that measures how efficient a company is with earning cash flow through invested capital. A typical ROIC formula divides operating income, adjusted for its tax rate, by total debt plus shareholder equity minus cash. The goal of the ROIC calculation is to display how much new cash is generated from capital investments. Presently, Ralph Lauren Corporation’s ROIC is 0.233942. The ROIC 5 year average is 0.453243 and the ROIC Quality ratio is at 14.101568.

Ralph Lauren Corporation (NYSE:RL) has a Gross Margin (Marx) ratio of 0.670801. This number is based on the research by University of Rochester professor Robert Novy-Marx. Marx believed that a high gross income ratio was a sign of a quality company. Looking further, Ralph Lauren Corporation has a Gross Margin score of 7. This score is based on the Gross Margin (Marx) metric using a scale from 1 to 100 where a 1 would be seen as positive, and a 100 would be viewed as negative. Ralph Lauren Corporation (NYSE:RL) currently has an EV or Enterprise Value of 6420045. The EV is used to show how the market assigns value to a company as a whole. EV is essentially a modification of market cap, as it incorporates debt and cash for assessing a firm’s valuation. Monitoring EV may help when comparing companies with different capital structures. EV can help investors gain a truer sense of whether a company is undervalued or not.

Value Investors may be keeping an eye on the Magic Formula Rank or MF Rank for Ralph Lauren Corporation (NYSE:RL). Currently, Ralph Lauren Corporation has a MF Rank of 1447. The Magic Formula was created and popularized by Joel Greenblatt in his book “The Little Book That Beats the Market”. Greenblatt’s formula helps identify stocks that are priced attractively with a high earnings yield, or solid reported profits compared to the market value of the company. To spot opportunities in the equity market, investors may be checking for stocks that have the lowest combined MF Rank. Ralph Lauren Corporation (NYSE:RL) has a present Value Composite score of 15. This score falls on a scale from 0 to 100 where a lower score would indicate an undervalued company and a higher score would indicate an overvalued company. This ranking was created by James O’Shaughnessy using six different valuation ratios including price to book value, price to sales, EBITDA to EV, price to cash flow, price to earnings, and shareholder yield. Ralph Lauren Corporation (NYSE:RL) currently has an EV or Enterprise Value of 6420045. The EV is used to show how the market assigns value to a company as a whole. EV is essentially a modification of market cap, as it incorporates debt and cash for assessing a firm’s valuation. Monitoring EV may help when comparing companies with different capital structures. EV can help investors gain a truer sense of whether a company is undervalued or not.

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