One-glance verdict
Undervalued
$136.86 our estimate vs market $92.00
Wall Street consensus: $122.50 (-10.5% 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
$92.00
52-week range
$91.71 - $152.95
Market cap
$226.76B
Balance sheet
Watch
15.35x Strong cushion
Net debt $28.65B. 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 18.3x P/E vs peer median 34.5x (47.1% 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 giant in the luxury world, owning a huge collection of famous brands you might recognize, like Louis Vuitton, Tiffany & Co., Dior, and Sephora. The company sells a wide variety of high-end items, but its biggest money-maker is its Fashion & Leather Goods group. Owning so many desirable brands gives LVMH strong pricing power, which helps it maintain high profit margins (the percentage of each sale 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 wine and spirits company, and Louis Vuitton, a famous fashion house. Moët Hennessy itself was the result of a 1971 merger between champagne maker Moët & Chandon and cognac producer Hennessy. Under the leadership of Bernard Arnault, the company grew by acquiring many other well-known luxury brands over the years. This strategy of buying and nurturing a wide range of high-end brands has turned LVMH into the world's largest luxury goods group.
What it actually does
LVMH is a family of over 75 distinguished brands, often called 'Maisons,' that create and sell high-end products to customers around the world. You might recognize names like Louis Vuitton, known for its iconic handbags, Tiffany & Co. for jewelry, Sephora for cosmetics, and Moët & Chandon for champagne. The company operates in all major sectors of the luxury market, from fashion and leather goods to perfumes, watches, and fine wines and spirits. Essentially, LVMH owns and manages a wide variety of companies that cater to a taste for premium and well-crafted items.
Fashion & Leather Goods
This is LVMH's largest and most profitable business area, making up about half of the company's revenue. 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 high-end clothing, handbags, shoes, and other accessories. Customers purchase these items for their craftsmanship, brand heritage, and as status symbols.
Selective Retailing
This division focuses on creating unique shopping experiences and is a significant part of the company's business. It includes the global beauty retailer Sephora, where customers can buy a wide range of makeup, skincare, and fragrances from various brands, including many owned by LVMH. It also operates DFS, which are duty-free stores often found in airports, catering to international travelers.
Watches & Jewelry
This segment features some of the most prestigious names in the world of high-end jewelry and timepieces. Brands like Tiffany & Co., Bvlgari, and TAG Heuer design, manufacture, and sell everything from diamond rings to luxury watches. Customers buy these products as timeless pieces, for special occasions, and as valuable investments. This is a growing and important part of LVMH's overall business.
Perfumes & Cosmetics
This group includes famous brands like Parfums Christian Dior, Guerlain, and Fenty Beauty by Rihanna. These companies create and sell fragrances, makeup, and skincare products. They are sold in department stores, specialty retailers like Sephora, and their own boutiques, appealing to a broad range of customers who want to experience a piece of the luxury brand.
Wines & Spirits
This is the historic foundation of the company, featuring a collection of prestigious champagne, cognac, and wine brands. It includes world-renowned names like Moët & Chandon, Dom Pérignon, Hennessy, and Veuve Clicquot. These beverages are sold globally in retail stores, restaurants, and bars to consumers for celebrations and fine dining.
What management is betting on now
The company is focused on increasing the desirability of its top brands like Louis Vuitton and Dior through creative innovation and unique retail experiences. They are also heavily investing in their jewelry and watch brands, particularly by renovating Tiffany & Co. stores and developing high-end jewelry collections. Another key priority is sustainability (the practice of creating products in a way that minimizes environmental impact), with a program called LIFE 360 that aims to improve circular design and protect biodiversity.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $136.86 vs current price $92.00
Wall Street consensus is the average analyst price target: $122.50 (-10.5% lower than our fair-value estimate).
Our most-likely fair value is $136.86 a share — about 48.8% above today's price of $92.00, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $28.7B. Interest coverage 15.4x.
Net debt
$28.65B
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 $42.69B Interest coverage 15.35x This is the baseline the peer rows are being compared against.
Total debt $20.58B Interest coverage 2.62x -83% vs LVMUY Carries about 5.9x less debt cushion than LVMUY.
Total debt $15.53B Interest coverage 15.20x -1% vs LVMUY Has roughly the same debt cushion as LVMUY.
Total debt $2.62B Interest coverage 121.73x +693% vs LVMUY Carries about 7.9x more debt cushion than LVMUY.
Total debt $9.25B Interest coverage 5.02x -67% vs LVMUY Carries about 3.1x less debt cushion than LVMUY.
Total debt $3.64B 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 18.3x P/E vs peer median 34.5x (47.1% 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)
18.25x
Forward P/E
16.19x
P/B
2.88x
P/S
2.85x
EV/EBITDA
12.62x
PEG ratio
1.47x
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
$42.69B
Total cash
$14.03B
Growth
How the business has been compounding
Revenue TTM
$91.51B
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
$21.69B
Free CF TTM
$16.32B
FCF margin
17.8%
Dividend
Shareholder payout
Yield
3.3%
Payout ratio
59.4%
Last ex-div date
2026-04-27