We are maintaining our fair value estimate of EUR 670 for wide-moat LVMH as the company reported an expected slowdown in growth trends in the first quarter. We view shares as modestly overvalued at current levels.
Louis Vuitton’s fully controlled distribution allows it to avoid discounting its products, which boosts profitability (operating margins well over 40%) and helps maintain the value perception.
While LVMH has amassed an impressive portfolio of brands, it often bids for those competitively, which results in high capital tie-up in goodwill and purchased intangibles, reducing capital returns.
|
Metric
|
MC
|
RMS
|
KER
|
|---|---|---|---|
Price/Earnings (Normalized) | 26.31 | 53.75 | 14.14 |
Price/Book Value | 6.55 | 16.22 | 2.82 |
Price/Sales | 4.65 | 18.39 | 2.19 |
Price/Cash Flow | 17.42 | 48.17 | 9.57 |
|
Metric
|
MC
|
RMS
|
KER
|
|---|---|---|---|
Quick Ratio | 0.58 | 3.58 | 0.68 |
Current Ratio | 1.32 | 4.40 | 1.38 |
Interest Coverage | 23.09 | 99.32 | 12.44 |
|
Metric
|
MC
|
RMS
|
KER
|
|---|---|---|---|
Return on Assets (Normalized) | 11.43% | 24.29% | 8.33% |
Return on Equity (Normalized) | 27.46% | 33.36% | 20.97% |
Return on Invested Capital (Normalized) | 16.88% | 27.81% | 11.34% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
LVMHF
| Lvmh Moet Hennessy Louis Vuitton SE | — | Pwh | $425.5 Bil | |
LVMUY
| Lvmh Moet Hennessy Louis Vuitton SE ADR | Ffnfcbz | Cnhm | $425.5 Bil | |
HESAF
| Hermes International SA | — | Brdcm | $263.8 Bil | |
HESAY
| Hermes International SA ADR | Hdzbrkxrn | Wccbr | $262.8 Bil | |
CHDRF
| Christian Dior SE | — | Zwhs | $143.9 Bil | |
CHDRY
| Christian Dior SE ADR | — | Qypyx | $143.7 Bil | |
SWGAY
| The Swatch Group AG ADR | Mmmwjlxy | Rmxmxx | $11.0 Bil | |
TPR
| Tapestry Inc | Jlgljngz | Nrwkrl | $9.2 Bil | |
CPRI
| Capri Holdings Ltd | Ycdmkhrq | Qdyrb | $4.3 Bil | |
REAL
| The RealReal Inc | Jjb | Mbxk | $346.5 Mil |
