# LVMH Moët Hennessy - Louis Vuitton, Société Européenne (EPA:MC)

As of Sun 8 Nov 2026 12:00 UTC (weekly snapshot). Full report: https://standard-equity.report/EPA/MC

Price €408.75 (EUR), market cap €201.6B, Consumer Discretionary - Luxury Goods.

## Valuation

- SE Reference Value (expected value, DCF): €532.59 (central 50% range €438.78 to €664.34), +30% against the price; range width narrow
- SE Grade: 1 of 3 (Value 3, Quality 3, Moat 2)
- Consensus Rating: Buy (Strong buy 13, Buy 3, Hold 10, Sell 0, Strong sell 1)
- Consensus Price (mean): €488.43, +19% against the price

## Key metrics

Financials in EUR. Peer percentile: 100 = best in the peer group.

| Metric | Now | 5Y median | 10Y median | Peers |
|---|---|---|---|---|
| Revenue | €79.64B | CAGR 12.6% | CAGR 8.9% | P96 |
| Revenue growth | -3.8% | 8.8% | 9.8% | P7 |
| Gross margin | 66.4% | 68.3% | 66.4% | P70 |
| Operating margin | 21.8% | 26.4% | 21.6% | P85 |
| Net margin | 13.7% | 17.6% | 13.5% | P74 |
| FCF yield | 7.1% | 3.9% | 4.3% | P70 |
| FCF margin | 18.0% | 16.2% | 15.7% | P74 |
| FCF / net income | 1.32x | 1.07x | 1.01x | P77 |
| ROIC | 12.5% | 19.6% | 17.3% | P19 |
| ROE | 16.3% | 26.1% | 20.1% | P11 |
| ROA | 7.7% | 9.6% | 8.1% | P30 |
| EPS | €21.98 | CAGR 18.6% | CAGR 11.7% | - |
| EPS growth | -0.2% | 8.2% | 12.9% | P8 |
| Book value per share | €137.58 | CAGR 12.8% | CAGR 11.2% | - |
| FCF per share | €29.04 | CAGR 11.5% | CAGR 15.7% | - |
| Dividend per share | €13.00 | CAGR 16.7% | CAGR 14.0% | - |
| Dividend yield | 3.2% | 1.8% | 1.9% | P73 |
| Payout ratio | 59.3% | 42.9% | 47.3% | P71 |
| Diluted shares | 493.1M | CAGR -0.2% | CAGR -0.1% | P62 |
| Buyback yield | 0.8% | 0.3% | 0.1% | P62 |
| Debt/equity | 0.53x | 0.62x | 0.61x | P63 |
| Enterprise value | €226.8B | CAGR 7.1% | CAGR 15.5% | P100 |
| Long-term debt | €26.56B | CAGR 0.9% | CAGR 23.3% | P96 |

## Company Note (H1 2026)

Written by AI from the data above.

**LVMH's first half was shaped** by a softer Chinese consumer, which weighed on fashion and leather goods, particularly in Asia. Revenue fell 2.9% while diluted EPS edged up 0.8%. Management said a logistics disruption at a freight forwarder cost Louis Vuitton more than one point of growth. Price increases in watches and jewelry, tied to gold prices, helped that division, but management expects them to moderate. The setback looks priced in: SE fair value of €533 is 30.3% above the price.

**On the October call**, management expected watches and jewelry to keep growing in the fourth quarter, though Bvlgari faces a tougher comparison. It guided to a negative currency impact on second-half margin of around 70 bps, similar to the first half. The plan is self-help at Louis Vuitton and Dior, Sephora expansion through partnerships such as TikTok in the U.S., and continued DFS asset sales. Pressed on Dior, management said results are "not disappointing". It also rejected price cuts at Louis Vuitton to protect desirability.

**Analysts are aligned** with that cautious tone. They expect FY2026 EPS to rise just 1.6% on revenue down 0.4%, then a recovery in FY2027, with EPS up 7.8%. The market is gloomier still: the price implies revenue shrinking 1.4% a year over the next five years, below what consensus projects for the current year. Because the first-half revenue decline was smaller than the prior half's, a FY2027 rebound looks plausible rather than heroic. The upside rests on that gap between implied and expected growth.

**Returns have come down sharply** from their peak. ROE moved from 27.6% in FY2022 to 16.1% in FY2025, and ROIC fell from 19.9% to 12.6% over the same span. Both returns now sit below the peer median. Operating margin slipped from 26.5% to 21.9%, though it remains above peers. Cash conversion is the bright spot: free cash flow runs at 1.32x net income, above its 5-year median of 1.07x and in the 79th percentile of peers. The falling returns are what hold Quality back.

**The P/E** of 18.6x sits well below its 10-year median of 25.0x, a discount rarely seen for this franchise. SE fair value of €533 is 30.3% above the price, and the model carries high confidence. The star- and recency-weighted analyst target of €488 is 19.5% above the price. For the price to hold, revenue only needs to stay roughly flat over a decade. A FY2027 that fails to deliver consensus revenue growth would be the clearest sign that even this low bar is at risk, with Chinese sentiment and the Middle East the risks management flagged.

**The SE Score** is 1 of 3. Quality earns three stars because ROIC of 14% clears an 8.1% cost of capital, interest cover is ample and cash conversion is strong. Moat earns two stars, as ROIC stayed above 15% in seven of the last ten years and gross margin has held stable. Value earns three stars, with SE fair value 30.3% above the price, which left the business tier at two. The overall score was then lowered from two because the five-year return over the hurdle ranks outside the top tenth of companies.

---
Weekly snapshot, not live data. For information only, not investment advice. Methodology: https://standard-equity.report/methodology