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Is LVMH (ENXTPA:MC) Overvalued After Its Recent Share Price Rebound?
LVMH Moët Hennessy - Louis Vuitton Société Européenne (ENXTPA:MC) has been grinding higher, with the stock up around 16% over the past 3 months and roughly 7% over the past year.
See our latest analysis for LVMH Moët Hennessy - Louis Vuitton Société Européenne.
That backdrop fits with what we are seeing now. A 16.0% 90 day share price return suggests momentum is rebuilding even as the 1 year total shareholder return of 7.5% remains more modest.
If LVMH has you thinking about where else quality and momentum might be lining up, this could be a good moment to explore fast growing stocks with high insider ownership.
Yet with the shares now hovering near analyst targets and trading at a premium to estimated intrinsic value, investors face a familiar dilemma: is LVMH still a buy at these levels, or is future growth already priced in?
Most Popular Narrative Narrative: 4.8% Overvalued
With LVMH last closing at €641.8 against a narrative fair value of €612.4, the current setup leans rich and hinges on ambitious profit assumptions.
Analysts expect earnings to reach €16.4 billion (and earnings per share of €30.93) by about September 2028, up from €11.0 billion today. However, there is some disagreement amongst the analysts with the more bearish ones expecting earnings as low as €11.1 billion.
Curious how a moderate growth outlook still justifies a premium luxury multiple? The narrative leans on firm margin expansion and disciplined valuation math. Want to see exactly how those projections stack up?
Result: Fair Value of €612.4 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, sustained weakness in Asian luxury demand and ongoing cost inflation could quickly compress margins and undermine the premium multiple that this narrative relies on.
Build Your Own LVMH Moët Hennessy - Louis Vuitton Société Européenne Narrative
If this perspective does not quite match your own or you would rather dig into the numbers yourself, you can build a custom view in just a few minutes, Do it your way.
A great starting point for your LVMH Moët Hennessy - Louis Vuitton Société Européenne research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
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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.
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