One-glance verdict
Undervalued
$166.26 our estimate vs market $89.75
Wall Street consensus: $106.83 (-35.7% lower than our fair-value estimate)
46% below our estimate, below the bear case
Fundamentals snapshot
LVMH Moët Hennessy - Louis Vuitton, Société Européenne
LVMUY · PNK · Consumer Cyclical · Luxury Goods
Current price
$89.75
52-week range
$82.29 - $152.95
Market cap
$221.22B
Balance sheet
Watch
15.35x Strong cushion
Net debt $27.91B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Returns 16.6% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 4/10 years.
- Reward Trades at 17.5x P/E vs peer median 34.0x (48.5% cheaper).
- Risk Operating margin compressed from 26.5% to 22.5% over 3 years.
What this company does
LVMH Moët Hennessy - Louis Vuitton, Société Européenne
LVMH is a company that sells super fancy items like Louis Vuitton bags, Christian Dior clothes, Sephora makeup, and Moët & Chandon champagne. The money they make mostly comes from selling these luxury goods, which matters because people often keep buying these high-end items even when the economy is a bit shaky. This focus on desirable luxury helps them maintain strong margins (the percentage of each sales dollar left after paying for the costs of making and selling the product).
How the company got here
LVMH's story is a modern tale of luxury empire-building, though its roots stretch back centuries. The company as we know it today was formed in 1987 through the merger of fashion house Louis Vuitton and champagne producer Moët Hennessy. This strategic union created a powerhouse in the luxury market, allowing for shared resources and a broader portfolio of high-end brands. Over the decades, LVMH has grown by acquiring other prestigious names in fashion, jewelry, cosmetics, and spirits, carefully curating a collection of businesses that embody exclusivity and craftsmanship. This expansion has solidified its position as the world's largest luxury goods conglomerate.
What it actually does
LVMH Moët Hennessy - Louis Vuitton is essentially a collection of highly desirable, premium brands that sell luxury products. Think of it as a parent company that owns many famous names you might see in high-end department stores or on aspirational wish lists. They operate across various categories, from the clothes and handbags you wear to the champagne you might celebrate with, and the perfumes you might wear. The common thread is a focus on exceptional quality, heritage, and a certain level of exclusivity that commands premium prices.
Wines & Spirits
This segment is where LVMH's heritage in fine beverages truly shines, encompassing iconic champagne and spirits brands. You're looking at names like Moët & Chandon, Dom Pérignon, Krug, and Veuve Clicquot for champagne, and Hennessy for cognac. They also produce other wines and spirits from vineyards around the world. These products are for consumers seeking celebratory drinks or high-quality spirits, often purchased for special occasions or as gifts. This is a significant part of LVMH's overall business, contributing a substantial portion of its revenue through the sale of these premium alcoholic beverages.
Fashion & Leather Goods
This is arguably LVMH's most visible and dominant business line, featuring some of the world's most coveted fashion and accessory brands. It includes iconic names like Louis Vuitton, Christian Dior, Fendi, Celine, and Loewe. These brands sell everything from handbags, luggage, and ready-to-wear clothing to shoes and accessories. Customers are typically affluent individuals who value brand prestige, design, and high-quality craftsmanship. This segment is the largest revenue generator for LVMH, making up a significant majority of the company's overall sales.
Perfumes & Cosmetics
In this segment, LVMH offers a range of fragrances, makeup, and skincare products from well-known luxury houses. Brands like Guerlain, Parfums Christian Dior, Fenty Beauty by Rihanna, and Benefit Cosmetics fall under this umbrella. These products appeal to consumers looking for high-quality beauty items, often associated with the prestige of their parent fashion brands or celebrity endorsements. While smaller than fashion or wines and spirits, this segment is a crucial part of LVMH's strategy to capture a broader luxury consumer base and represents a growing area for the company.
Watches & Jewelry
This division houses LVMH's prestigious jewelry and watchmaking brands, including Tiffany & Co., Bulgari, TAG Heuer, and Hublot. They offer exquisite jewelry, from engagement rings to high-end necklaces, as well as meticulously crafted timepieces. These are products for consumers seeking significant personal adornments, investment pieces, or luxury status symbols. This segment is a key contributor to LVMH's overall revenue, appealing to a discerning clientele that appreciates fine craftsmanship and heritage in timekeeping and adornment.
Selective Retailing
This segment acts as a curated marketplace for luxury goods, operating high-end department stores and travel retail outlets. Key names here include Sephora, a global beauty retailer, and DFS, which focuses on travel retail, particularly in airports and tourist destinations. They also operate iconic Parisian department stores like Le Bon Marché Rive Gauche. This business line allows LVMH to directly engage with consumers across multiple luxury categories and reach shoppers in prime locations, contributing a notable share to the company's total sales.
What management is betting on now
LVMH's management is focused on maintaining its leadership in the luxury market by continuing to invest in its core brands and expanding its global reach. A key priority is nurturing the desirability of its labels through innovation in products and marketing, ensuring they remain at the forefront of consumer aspiration. They are also strategically expanding into new growth areas and markets, while ensuring operational excellence across their diverse portfolio. This approach aims to drive sustainable growth and profitability by catering to the evolving tastes of affluent consumers worldwide.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $166.26 vs current price $89.75
Wall Street consensus is the average analyst price target: $106.83 (-35.7% lower than our fair-value estimate).
Our most-likely fair value is $166.26 a share — about 85.2% above today's price of $89.75, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $27.9B. Interest coverage 15.4x.
Net debt
$27.91B
Interest coverage
15.35x
LVMH Moët Hennessy - Louis Vuitton, Société Européenne's profit covers its interest bill about 15.4 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
LVMUY
BASELINE
LVMH Moët Hennessy - Louis Vuitton, Société Européenne
Total debt $41.58B Interest coverage 15.35x This is the baseline the peer rows are being compared against.
Total debt $20.04B Interest coverage 2.62x -83% vs LVMUY Carries about 5.9x less debt cushion than LVMUY.
Total debt $15.13B Interest coverage 15.20x -1% vs LVMUY Has roughly the same debt cushion as LVMUY.
Total debt $2.55B Interest coverage 121.73x +693% vs LVMUY Carries about 7.9x more debt cushion than LVMUY.
Total debt $9.20B Interest coverage 5.02x -67% vs LVMUY Carries about 3.1x less debt cushion than LVMUY.
Total debt $3.54B Interest coverage 50.94x +232% vs LVMUY Carries about 3.3x more debt cushion than LVMUY.
What you should know
The case for and against LVMUY
3 Rewards
1 Risk
Rewards
-
Returns 16.6% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 4/10 years.
-
Trades at 17.5x P/E vs peer median 34.0x (48.5% cheaper).
Risks
-
Operating margin compressed from 26.5% to 22.5% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
17.53x
Forward P/E
17.27x
P/B
2.89x
P/S
2.78x
EV/EBITDA
12.18x
PEG ratio
1.97x
Profitability
How much profit each dollar creates
Gross margin
66.4%
Operating margin
22.5%
Net margin
13.7%
ROE
16.6%
ROA
7.7%
Health
Liquidity and balance-sheet strength
Debt / equity
0.53x
Current ratio
1.63x
Quick ratio
0.66x
Total debt
$41.58B
Total cash
$13.67B
Growth
How the business has been compounding
Revenue TTM
$89.14B
Revenue 5Y CAGR
0.7%
EPS TTM
5.12
EPS 5Y CAGR
-8.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$21.13B
Free CF TTM
$15.90B
FCF margin
17.8%
Dividend
Shareholder payout
Yield
3.4%
Payout ratio
59.3%
Last ex-div date
2026-11-30