Kontoor Brands Inc (KTB) is undervalued and Ralph Lauren Corp (RL) is slightly overvalued.
Against our estimates of intrinsic value, KTB trades at the wider discount: a margin of safety of +21%, against -16% for RL.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.5% (average of 3 methods) values the shares at $86.10; the price of $67.82 is 21% below that value, and 78% of that value comes from beyond year five.
Leak Score 100/100 on 3 of 12 signals
Discounting its cash flows at 10.9% (average of 3 methods) values the shares at $297.59; the price of $346.06 is 16% above that value, and 70% of that value comes from beyond year five.
Leak Score 76/100 on 9 of 12 signals
| Metric | KTB | RL |
|---|---|---|
| Verdict | Undervalued | Slightly overvalued |
| Price | $67.82 | $346.06 |
| Intrinsic value | $86.10 | $297.59 |
| Margin of safety | +21% | -16% |
| Leak Score | 100/100 (3/12) | 76/100 (9/12) |
| Market cap | $3.7B | $20.6B |
| Revenue growth, 5 years | 8.5% | 13.0% |
| Operating margin | 13.1% | 16.7% |
| Net margin | 8.7% | 11.8% |
| Return on equity | 41.0% | 37.5% |
| Debt to equity | 2.06 | 1.10 |
| P/E | 14.2x | 21.8x |
| Forward P/E | 10.3x | 16.5x |
| P/B | 6.0x | 7.6x |
| Dividend yield | 3.1% | 1.1% |