EssilorLuxottica Société anonyme

BRSE:EI Stock Report

Market Cap: CHF 97.6b

EssilorLuxottica Société anonyme Valuation

Is EI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of EI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EI (CHF117) is trading below our estimate of fair value (CHF140.27)

Significantly Below Fair Value: EI is trading below fair value, but not by a significant amount.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for EI?

Key metric: As EI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for EI. This is calculated by dividing EI's market cap by their current earnings.
What is EI's PE Ratio?
PE Ratio45.5x
Earnings€2.29b
Market Cap€104.33b

Price to Earnings Ratio vs Peers

How does EI's PE Ratio compare to its peers?

The above table shows the PE ratio for EI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average49.7x
ALC Alcon
37.6x9.8%CHF 38.6b
YPSN Ypsomed Holding
66.2x41.1%CHF 4.9b
STMN Straumann Holding
63.1x21.1%CHF 18.2b
SOON Sonova Holding
31.8x11.2%CHF 17.9b
EI EssilorLuxottica Société anonyme
45.5x15.6%CHF 104.3b

Price-To-Earnings vs Peers: EI is good value based on its Price-To-Earnings Ratio (45.5x) compared to the peer average (48.9x).


Price to Earnings Ratio vs Industry

How does EI's PE Ratio compare vs other companies in the European Medical Equipment Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
EI 45.5xIndustry Avg. 29.6xNo. of Companies8PE01632486480+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: EI is expensive based on its Price-To-Earnings Ratio (45.5x) compared to the European Medical Equipment industry average (29.7x).


Price to Earnings Ratio vs Fair Ratio

What is EI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio45.5x
Fair PE Ratio39.1x

Price-To-Earnings vs Fair Ratio: EI is expensive based on its Price-To-Earnings Ratio (45.5x) compared to the estimated Fair Price-To-Earnings Ratio (39.1x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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