One-glance verdict
Undervalued
$165.41 our estimate vs market $110.85
Wall Street consensus: $125.50 (-24.1% lower than our fair-value estimate)
33% below our estimate, below the bear case
Fundamentals snapshot
LVMH Moët Hennessy - Louis Vuitton, Société Européenne
LVMUY · PNK · Consumer Cyclical · Luxury Goods
Current price
$110.85
52-week range
$102.50 - $152.95
Market cap
$273.30B
Balance sheet
Watch
15.35x Strong cushion
Net debt $28.80B. 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 22.0x P/E vs peer median 36.2x (39.3% 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 global luxury company that owns dozens of famous high-end brands, including Louis Vuitton for fashion, Tiffany & Co. for jewelry, and Sephora for beauty products. The company makes most of its money from its Fashion & Leather Goods group, which is known for its iconic handbags and clothing. Owning so many desirable brands gives LVMH the power to set high prices, leading to strong profit margins (the portion of each dollar in sales that the company gets to keep as actual profit).
How the company got here
LVMH was formed in 1987 through the merger of Moët Hennessy, a producer of champagne and cognac, and Louis Vuitton, a maker of luxury leather goods. This combination created the foundation for the world's leading luxury products group. Under the leadership of Bernard Arnault, the company grew rapidly by acquiring a wide range of famous brands in different luxury sectors. Key acquisitions over the years have included fashion houses like Givenchy and Fendi, the beauty retailer Sephora, and the iconic American jeweler Tiffany & Co. This strategy of buying and nurturing a diverse portfolio of high-end brands has made LVMH a dominant force in the global luxury market.
What it actually does
LVMH is a family of over 75 distinguished brands, often referred to as 'Maisons', that create and sell high-quality products across several categories. For an everyday shopper, this means LVMH is the company behind Louis Vuitton handbags, Christian Dior perfumes, TAG Heuer watches, and even the Sephora stores where you might buy makeup. The company operates in five main areas: fashion and leather goods, wines and spirits, perfumes and cosmetics, watches and jewelry, and specialized retail stores. Essentially, LVMH offers a wide array of luxury items, from champagne and spirits to high-end clothing and accessories, all under one very large corporate umbrella.
Fashion & Leather Goods
This is LVMH's largest and most profitable business area, making up almost half of the company's sales. It includes some of the most famous fashion houses in the world, such as Louis Vuitton, Christian Dior, Fendi, and Givenchy. These brands design and sell a range of products including handbags, ready-to-wear clothing, shoes, and travel accessories. Customers who value craftsmanship and brand heritage pay for these high-end fashion items, which are known for their quality and iconic designs.
Wines & Spirits
This segment is built on a collection of prestigious champagne and spirits brands with long histories. It includes world-renowned names like Moët & Chandon, Dom Pérignon, Veuve Clicquot, and Hennessy cognac. Consumers and collectors purchase these premium beverages for celebrations and special occasions. While not as large as the fashion division, this group contributes a significant portion of LVMH's revenue and profits.
Perfumes & Cosmetics
This part of the company focuses on creating and selling fragrances, makeup, and skincare products. It is home to well-known brands such as Parfums Christian Dior, Guerlain, and Benefit Cosmetics, as well as newer, popular lines like Fenty Beauty by Rihanna. Shoppers buy these products to feel good and express their personal style. This segment benefits from having both historic, established brands and trendy, new ones to appeal to a wide range of customers.
Watches & Jewelry
This division is where LVMH sells high-end timepieces and fine jewelry. It features iconic brands like Bulgari, TAG Heuer, Hublot, and the American luxury jeweler, Tiffany & Co. Customers purchase these items as significant, often once-in-a-lifetime, luxury purchases and status symbols. This is a strategically important area for LVMH as it allows the company to cater to its wealthiest clients.
Selective Retailing
This segment is all about the shopping experience itself and includes LVMH's retail brands. The most recognizable name here is Sephora, a global chain of beauty stores that sells a wide variety of cosmetic and skincare products from many different brands, including some owned by LVMH. This division also includes DFS, which operates duty-free stores in airports and other travel locations, and the high-end Parisian department store Le Bon Marché. This part of the business is a major source of revenue and gives LVMH direct access to consumers.
What management is betting on now
LVMH's strategy focuses on increasing the desirability and exclusivity of its brands rather than just selling more products. Management is investing heavily in creating unique and high-quality customer experiences in their stores and online. They are also focused on growing their presence in the high-end jewelry market, particularly with the recent acquisition of Tiffany & Co. Another key priority is expanding Sephora's global reach as a leading beauty retailer, which helps them gather valuable data about what customers want.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $165.41 vs current price $110.85
Wall Street consensus is the average analyst price target: $125.50 (-24.1% lower than our fair-value estimate).
Our most-likely fair value is $165.41 a share — about 49.2% above today's price of $110.85, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $28.8B. Interest coverage 15.4x.
Net debt
$28.80B
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 $42.90B Interest coverage 15.35x This is the baseline the peer rows are being compared against.
Total debt $15.61B Interest coverage 15.20x -1% vs LVMUY Has roughly the same debt cushion as LVMUY.
Total debt $20.68B Interest coverage 2.62x -83% vs LVMUY Carries about 5.9x less debt cushion than LVMUY.
Total debt $2.63B Interest coverage 121.73x +693% vs LVMUY Carries about 7.9x more debt cushion than LVMUY.
Total debt $9.30B Interest coverage 3.20x -79% vs LVMUY Carries about 4.8x less debt cushion than LVMUY.
Total debt $3.92B Interest coverage 14.87x -3% vs LVMUY Has roughly the same debt cushion as 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 22.0x P/E vs peer median 36.2x (39.3% 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)
21.99x
Forward P/E
19.11x
P/B
3.52x
P/S
3.43x
EV/EBITDA
14.95x
PEG ratio
1.89x
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
$42.90B
Total cash
$14.10B
Growth
How the business has been compounding
Revenue TTM
$91.96B
Revenue 5Y CAGR
0.7%
EPS TTM
5.04
EPS 5Y CAGR
-8.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$21.80B
Free CF TTM
$16.40B
FCF margin
17.8%
Dividend
Shareholder payout
Yield
2.7%
Payout ratio
59.4%
Last ex-div date
2026-04-27