Wondering if LVMH Moët Hennessy Louis Vuitton Société Européenne’s luxury pedigree is reflected in its current stock price? You are definitely not alone. Figuring out if the shares are a steal or priced for perfection is a hot topic.
LVMH’s stock has shown resilience, gaining 2.6% over the last week and 2.3% over the past month, even though the year-to-date performance is slightly down by 1.6%.
Recent headlines have focused on shifts in luxury sector sentiment and ongoing changes in global consumer demand. News about LVMH’s strategic initiatives and acquisitions has added fuel to investor discussions, making the latest price moves especially intriguing.
Its valuation score currently stands at 2 out of 6. This sparks a deeper look into whether the company offers fair value. Let’s break down traditional valuation methods first. There is also a smarter way to gauge true value coming up at the end.
LVMH Moët Hennessy – Louis Vuitton Société Européenne scores just 2/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
A Discounted Cash Flow (DCF) model estimates a company’s worth by projecting its future cash flows and then discounting them back to today’s values. This approach helps investors gauge whether the current market price reflects the underlying financial performance and growth potential.
For LVMH, the model uses the most recent Free Cash Flow, which stands at €13.3 billion. Analyst forecasts provide projections for the next five years, with Simply Wall St extrapolating further growth out to 2035. By 2029, Free Cash Flow is expected to be around €12.8 billion, with longer-term projections tapering slightly as growth rates normalize.
Based on these cash flows and applying a 2 Stage Free Cash Flow to Equity model, the estimated intrinsic value per share comes in at €364.01. Comparing this to the current share price, the analysis implies the stock is trading at a 71.8% premium to its fair value, meaning the shares appear significantly overvalued according to this method.
Result: OVERVALUED
Our Discounted Cash Flow (DCF) analysis suggests LVMH Moët Hennessy – Louis Vuitton Société Européenne may be overvalued by 71.8%. Discover 927 undervalued stocks or create your own screener to find better value opportunities.
MC Discounted Cash Flow as at Nov 2025
Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for LVMH Moët Hennessy – Louis Vuitton Société Européenne.
For profitable companies like LVMH Moët Hennessy Louis Vuitton Société Européenne, the price-to-earnings (PE) ratio is a widely accepted valuation metric. It compares the company’s share price to its earnings per share, offering a snapshot of how the market values those profits. A higher PE ratio can signal strong growth expectations or lower perceived risks, while a lower PE might suggest more modest prospects or elevated uncertainty.
LVMH currently trades at a PE ratio of 28.3x. To put this in context, the average PE for the luxury industry stands at 17.5x, while LVMH’s direct peers average a higher 37.9x. These benchmarks help set the stage, but they do not capture company-specific nuances like future growth, risk profile, or competitive advantages.
This is where Simply Wall St’s proprietary “Fair Ratio” comes in. The Fair Ratio for LVMH, which blends expectations for earnings growth, market cap, profit margins, industry factors, and risk level, is calculated at 33.1x. This tailored measure provides a more nuanced gauge of what would be a reasonable PE for LVMH today, going beyond broad industry or peer analogies by including all the company’s relevant fundamentals and outlooks.
Comparing LVMH’s actual PE of 28.3x with its Fair Ratio of 33.1x shows the stock is being valued slightly below what would be considered fully fair according to the analysis. While not dramatically underpriced, LVMH’s shares look about right compared to where one would expect, given all the company- and sector-specific factors.
Result: ABOUT RIGHT
ENXTPA:MC PE Ratio as at Nov 2025
PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1433 companies where insiders are betting big on explosive growth.
Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is simply your personal story or perspective about a company, tying together what you believe about its future prospects, growth rates, earnings potential, and margins. Narratives connect the story behind LVMH to a concrete financial forecast and an estimated fair value, giving context to the numbers and making valuation more meaningful.
These Narratives are available to use on Simply Wall St’s Community page, where millions of investors create, share, and update their views as new information becomes available. Narratives make investment decisions easier by letting you see how your Fair Value compares to the current Price, helping you decide if now is the time to buy or sell.
Best of all, Narratives dynamically adapt to new headlines or earnings reports, so your investment thesis always stays current. For example, some investors may set their fair value for LVMH as high as €720 based on optimism about luxury sector recovery and brand strength, while others might be more cautious, valuing it closer to €434 due to global risks and margin pressures.
Do you think there’s more to the story for LVMH Moët Hennessy – Louis Vuitton Société Européenne? Head over to our Community to see what others are saying!
ENXTPA:MC Community Fair Values as at Nov 2025
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.
Companies discussed in this article include MC.PA.
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