Ralph Lauren Corporation (RL) Stock Forecasts

Summary:

Our stock/bond asset allocation model, which we call the stock-bond barometer, shows that bonds are the asset class that offers the most value at the current market moment. Our model takes into account real-time levels, growth rates and government and short-term and long-term corporate fixed income and corporate yield forecasts, inflation, stock prices, GDP and corporate earnings, among other factors.The result is expressed as a standard deviation of the mean or sigma.The mean from the model going back to 1960 is a modest premium for stocks of 0.09 sigma, with a standard deviation of 1.05. In other words, stocks usually trade at a slight premium to what they have been since inflation started. is to rise further in 2022. The current valuation level is a 0.45 sigma premium for the stock, largely reflecting the higher move in long-term interest rates since the start of the fall and the end of the election. Other valuation measures also indicate reasonable multiples. The S&P 500’s current forward P/E ratio is around 21, in the normal range of 15-24. The current dividend yield of 1.2% is below the historical average of 2.9. %, but also 26% of the 10-year Treasury yield, the long-term average compared to 39%. Moreover, the gap between the S&P 500 earnings yield and the benchmark 10-year Treasury yield is about 30.