Levi Strauss & Co (LEVI) is fairly valued and Ralph Lauren Corp (RL) is slightly overvalued.
Against our estimates of intrinsic value, LEVI trades at the wider discount: a margin of safety of +5%, against -16% for RL.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.8% (average of 3 methods) values the shares at $21.08; the price of $20.06 is 5% below that value, and 73% of that value comes from beyond year five.
Leak Score 43/100 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 | LEVI | RL |
|---|---|---|
| Verdict | Fairly valued | Slightly overvalued |
| Price | $20.06 | $346.06 |
| Intrinsic value | $21.08 | $297.59 |
| Margin of safety | +5% | -16% |
| Leak Score | 43/100 (3/12) | 76/100 (9/12) |
| Market cap | $7.7B | $20.6B |
| Revenue growth, 5 years | 7.1% | 13.0% |
| Operating margin | 11.6% | 16.7% |
| Net margin | 7.3% | 11.8% |
| Return on equity | 25.4% | 37.5% |
| Debt to equity | 1.01 | 1.10 |
| P/E | 16.4x | 21.8x |
| Forward P/E | 11.7x | 16.5x |
| P/B | 3.4x | 7.6x |
| Dividend yield | 3.0% | 1.1% |