Is LVMH (ENXTPA:MC) Still Undervalued After Recent Share Price Momentum? A Fresh Look at Valuation

LVMH Moët Hennessy Louis Vuitton Société Européenne (ENXTPA:MC) has caught investor attention with its recent price moves, rising almost 7% in the past week and 14% over the past 3 months. The luxury giant’s stock dynamics invite a closer look at underlying trends.

See our latest analysis for LVMH Moët Hennessy - Louis Vuitton Société Européenne.

LVMH’s share price has built notable momentum recently, even as its 1-year total shareholder return remains slightly in the red. The latest upward trend suggests shifting sentiment around growth potential and luxury demand. This highlights how quickly confidence can return in this market.

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Given the recent rally, is LVMH still undervalued compared to its fundamentals, or have investors already priced in the company’s future growth prospects, leaving little room for further upside?

Most Popular Narrative: 1.8% Undervalued

LVMH’s current price of €542.90 closely tracks the narrative’s fair value of €552.90, suggesting analysts see little mispricing left to close. The focus now turns to underlying expectations for earnings growth and market position.

Improvement in local demand in China and the broader Asia-Pacific region, driven by innovative experiential retail (such as unique Louis Vuitton installations in Shanghai) and the ramp-up of high-profile local initiatives across brands, positions LVMH to capture the expanding affluent consumer base, likely contributing to future top-line (revenue) growth as macro headwinds subside.

Read the complete narrative.

Want to know the secret ingredient powering this price target? The entire valuation rests on sustained top-line growth and a margin recovery scenario that most investors are missing. Find out which bold operational assumptions anchor this narrative, and why even small tweaks could tip the scales.

Result: Fair Value of €552.90 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent weakness in Asian markets or prolonged cost pressures could threaten LVMH’s growth outlook and potentially shift the market narrative once again.

Find out about the key risks to this LVMH Moët Hennessy - Louis Vuitton Société Européenne narrative.

Another View: Discounted Cash Flow Tells a Different Story

While analysts see LVMH’s shares as only slightly undervalued at current levels, our DCF model presents a more cautious picture. According to the SWS DCF model, LVMH is trading above its estimated fair value, which suggests there may be less upside than consensus expects. Which method do you trust when the signals diverge?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out LVMH Moët Hennessy - Louis Vuitton Société Européenne for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own LVMH Moët Hennessy - Louis Vuitton Société Européenne Narrative

If you have your own perspective or want to dig deeper into the numbers, you can easily develop your personal take 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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