EssilorLuxottica (ENXTPA:EL) Valuation in Focus Following Record Revenue From AI Glasses Launch

EssilorLuxottica (ENXTPA:EL) just reported its strongest quarterly revenue ever, pushing its shares to a record high. The main driver was surging demand for its AI-powered smart glasses, particularly those created with Meta.

See our latest analysis for EssilorLuxottica Société anonyme.

EssilorLuxottica’s shares have jumped over 13% in the past week alone, reaching an all-time high as enthusiasm builds around its recent sales momentum and blockbuster AI-glasses launch. The company’s one-year total shareholder return now sits at nearly 46%, highlighting both short-term excitement and a longer track record of value creation as its outlook brightens.

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With the stock now trading at record highs after this explosive quarter, investors may wonder whether EssilorLuxottica remains undervalued or if the current surge already reflects expectations for even greater growth ahead.

Most Popular Narrative: 2.8% Overvalued

According to the most widely followed narrative, EssilorLuxottica’s current share price of €312.5 sits above the narrative’s calculated fair value of €303.95. As investors debate whether the recent rally is fully justified, attention turns to the drivers underpinning this premium valuation.

Investments in smart eyewear, AI-enabled vision solutions, and MedTech (Ray-Ban Meta, Oakley Meta, Nuance Audio, acquisition of Optegra Eye Clinics) capitalize on long-term demand for technologically advanced and personalized eye health platforms. These factors catalyze product mix upgrades and higher ASPs, which will benefit gross margin and future earnings.

Read the complete narrative.

Curious what aggressive bets and bold growth assumptions are fueling this near-record fair value? The narrative hinges on a wave of global expansion and profit margin optimism, with future earnings projections rarely seen in the industry. Find out how these expectations stack up against market realities and surprise analyst forecasts in the full story.

Result: Fair Value of €303.95 (OVERVALUED)

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

However, even with strong momentum, rapid shifts in optical technology adoption or new regulatory hurdles could challenge EssilorLuxottica’s optimistic growth scenario.

Find out about the key risks to this EssilorLuxottica Société anonyme narrative.

Build Your Own EssilorLuxottica Société anonyme Narrative

If you see things differently or simply want to dive deeper, you can build your own analysis in just a few minutes. Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding EssilorLuxottica Société anonyme.

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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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