L'Oréal Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 ORP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ORP (€318.83) is trading below our estimate of fair value (€467.14)

Significantly Below Fair Value: ORP is trading below fair value by more than 20%.


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ORP. This is calculated by dividing ORP's market cap by their current earnings.
What is ORP's PE Ratio?
PE Ratio26.7x
Earnings€6.48b
Market Cap€172.74b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ORP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24x
ULVR Unilever
21x5.7%UK£112.4b
HLN Haleon
28.5x10.6%UK£33.7b
RKT Reckitt Benckiser Group
21.6x11.3%UK£32.7b
W7L Warpaint London
24.7x11.8%UK£416.7m
ORP L'Oréal
26.7x7.5%€172.7b

Price-To-Earnings vs Peers: ORP is expensive based on its Price-To-Earnings Ratio (26.7x) compared to the peer average (23.4x).


Price to Earnings Ratio vs Industry

How does ORP's PE Ratio compare vs other companies in the European Personal Products Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies5PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ORP is expensive based on its Price-To-Earnings Ratio (26.7x) compared to the European Personal Products industry average (22.1x).


Price to Earnings Ratio vs Fair Ratio

What is ORP'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.

ORP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio26.7x
Fair PE Ratio29.4x

Price-To-Earnings vs Fair Ratio: ORP is good value based on its Price-To-Earnings Ratio (26.7x) compared to the estimated Fair Price-To-Earnings Ratio (29.4x).


Analyst Price Targets

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

The above table shows the analyst ORP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€318.83
€413.54
+29.7%
11.0%€508.00€325.00n/a26
Nov ’25€342.80
€414.96
+21.1%
10.8%€508.00€325.00n/a26
Oct ’25€396.00
€440.19
+11.2%
10.1%€525.00€350.00n/a26
Sep ’25€398.43
€443.68
+11.4%
9.9%€525.00€350.00n/a25
Aug ’25€392.93
€446.64
+13.7%
10.0%€526.00€350.00n/a25
Jul ’25€415.10
€449.08
+8.2%
11.1%€530.00€340.00n/a25
Jun ’25€447.90
€448.04
+0.03%
11.0%€530.00€340.00n/a25
May ’25€439.48
€446.52
+1.6%
11.0%€530.00€340.00n/a25
Apr ’25€439.13
€439.71
+0.1%
11.9%€530.00€320.00n/a24
Mar ’25€440.93
€438.44
-0.6%
11.8%€530.00€320.00n/a25
Feb ’25€444.35
€428.52
-3.6%
11.1%€525.00€320.00n/a25
Jan ’25n/a
€424.04
0%
10.7%€505.00€320.00n/a25
Dec ’24€429.90
€420.84
-2.1%
9.9%€500.00€320.00n/a25
Nov ’24€395.25
€420.64
+6.4%
10.2%€500.00€320.00€342.8025
Oct ’24€397.80
€422.16
+6.1%
10.3%€500.00€320.00€396.0025
Sep ’24€405.50
€424.84
+4.8%
10.0%€500.00€320.00€398.4325
Aug ’24€425.23
€423.44
-0.4%
10.2%€500.00€320.00€392.9325
Jul ’24€428.10
€417.96
-2.4%
10.1%€495.00€320.00€415.1025
Jun ’24€400.90
€416.40
+3.9%
10.4%€495.00€320.00€447.9025
May ’24€431.55
€412.00
-4.5%
11.5%€495.00€296.00€439.4825
Apr ’24€407.53
€380.67
-6.6%
10.3%€450.00€290.00€439.1324
Mar ’24€374.75
€379.50
+1.3%
10.6%€450.00€290.00€440.9324
Feb ’24€371.03
€369.67
-0.4%
9.9%€440.00€290.00€444.3524
Jan ’24€334.65
€361.88
+8.1%
10.1%€440.00€280.00n/a24
Dec ’23€357.38
€365.04
+2.1%
10.1%€440.00€280.00€429.9024
Nov ’23€319.35
€367.54
+15.1%
9.7%€440.00€300.00€395.2524

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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