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Assessing LVMH (ENXTPA:MC) Valuation After a Modest Recent Share Price Rebound

Simply Wall St · 1d ago

Recent Performance and Context

LVMH Moët Hennessy - Louis Vuitton Société Européenne (ENXTPA:MC) has been quietly grinding higher, with the stock up about 2 % over the past month and roughly 25 % in the past 3 months.

See our latest analysis for LVMH Moët Hennessy - Louis Vuitton Société Européenne.

That recent climb sits against a more muted backdrop, with the share price roughly flat year to date but supported by a positive one year total shareholder return. This suggests momentum is cautiously rebuilding as investors reassess LVMH's growth and valuation profile.

If LVMH has you thinking about where else quality brands and strong pricing power might show up, it could be worth exploring fast growing stocks with high insider ownership for fresh ideas.

With earnings still growing and the share price treading water this year, investors might wonder if LVMH now sits at an attractive entry point, or if the market is already pricing in its next leg of growth.

Most Popular Narrative: 3.2% Overvalued

With LVMH Moët Hennessy - Louis Vuitton Société Européenne last closing at €632.10 versus a narrative fair value of €612.40, the current setup implies a modest valuation premium built on relatively measured growth expectations and a specific view of margins and discount rates.

In order for you to agree with the analyst's consensus, you'd need to believe that by 2028, revenues will be €92.2 billion, earnings will come to €16.4 billion, and it would be trading on a PE ratio of 20.9x, assuming you use a discount rate of 8.1%. The relatively low difference between the current share price and the analyst consensus price target indicates that they believe on average, the company is fairly priced.

Read the complete narrative.

Curious how relatively modest growth, rising margins and a lower future earnings multiple still justify today’s premium price tag? The narrative’s arithmetic might surprise you.

Result: Fair Value of $612.40 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent weakness in Asian demand, along with margin pressure from cost inflation or execution missteps, could quickly undermine the current premium narrative.

Find out about the key risks to this LVMH Moët Hennessy - Louis Vuitton Société Européenne narrative.

Build Your Own LVMH Moët Hennessy - Louis Vuitton Société Européenne Narrative

If you are not fully aligned with this view, or simply prefer to dive into the numbers yourself, you can build a complete custom narrative in just a few minutes, Do it your way.

A great starting point for your LVMH Moët Hennessy - Louis Vuitton Société Européenne research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.