Hermès (ENXTPA:RMS) Valuation: What Softer Birkin and Kelly Resale Prices Signal for the Stock

The cooling frenzy around Birkin and Kelly resale prices is giving investors a fresh lens on Hermès International Société en commandite par actions (ENXTPA:RMS), as the broader luxury market digests inflation driven pressure and shifting demand.

See our latest analysis for Hermès International Société en commandite par actions.

Even with chatter about softer Birkin and Kelly premiums, Hermès’ latest share price of €2,144 sits on a modest recent upswing, and the stock’s long term total shareholder return still reflects a robust, premium brand narrative rather than a growth story that has stalled.

If this shift in luxury appetite has you rethinking where growth and resilience might come from next, it could be worth exploring fast growing stocks with high insider ownership as a fresh hunting ground for ideas.

With Hermès shares still sitting near record levels despite cooling luxury demand, is the market underestimating the brand’s long term pricing power, or already baking in every ounce of its future growth potential?

Most Popular Narrative: 10.1% Undervalued

With Hermès last closing at €2,144 against a narrative fair value of about €2,385, the prevailing view leans toward a still underappreciated compounder.

Scarcity driven supply model, underpinned by disciplined capacity investments (opening four new leather workshops in the next four years) and exclusive distribution expansion into key markets (e.g., U.S., China, India), enables Hermès to maximize pricing power and protect industry leading gross/net margins.

Read the complete narrative.

Curious how a heritage brand commands a future profit multiple usually reserved for high growth tech? The answer lies in bold revenue, margin and valuation bets that could redefine what “expensive” really means.

Result: Fair Value of €2385.19 (UNDERVALUED)

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

However, sustained weakness among Chinese clients and rising input costs could quickly challenge assumptions about Hermès’ seemingly untouchable margins and growth trajectory.

Find out about the key risks to this Hermès International Société en commandite par actions narrative.

Another Lens on Valuation

Step away from narratives and Hermès looks far from cheap. At about 50.2 times earnings versus 19.7 times for the European luxury group, and a fair ratio nearer 29.5 times, the share price loads a lot of perfection into today’s numbers, leaving little room for disappointment.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own Hermès International Société en commandite par actions Narrative

If this framework does not quite match your view, or you would rather interrogate the numbers yourself, you can build a custom perspective in under three minutes, Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Hermès International Société en commandite par actions.

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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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