LVMH Moët Hennessy - Louis Vuitton
🇫🇷 MC.PA · Paris · FR0000121014
Consumer
EUR 471.05 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
21.6
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 471.05 ÷ 21.84 = 21.6
TTM period through: 2025-12-31
Forward P/E (estimated): 18.8
Based on analyst estimates
Reference: Provider P/E (Trailing): 21.5
Yield (Fwd)
2.76%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 2.76%
Net Debt/EBITDA (TTM)
1.8x
Latest quarter: 3.6x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 3.6x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
59.5%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 61.7%
Cash Flow Payout (TTM): 35.5%
FCF Coverage (TTM): 2.24x
ROE
16.2%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
9.9x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
LVMH is a world-class luxury conglomerate with an exceptional brand portfolio and a well-covered dividend. However, the luxury sector's reliance on discretionary consumer spending makes it fundamentally unsuitable for our essential services dividend strategy. Not recommended for new positions, as the combination of a structural strategy mismatch, sub-3% yield, and elevated P/E outweighs the company's strong underlying business quality.
Sector Context
LVMH is the world's largest luxury goods conglomerate, operating highly recognized brands in fashion, leather goods, watches, and cosmetics. While it possesses an exceptional competitive moat and robust cash flows, the fashion and luxury sector is explicitly excluded from this dividend strategy due to its reliance on highly cyclical discretionary consumer spending rather than stable, non-discretionary essential services.
Temporary Opportunity Identified
Sector-wide luxury demand slump driven by inflation fears and geopolitical tensions in the Middle East impacting discretionary spending.
📊 Strategy Analysis
- • Dividend is extremely safe and well-covered by free cash flow, indicated by a low cash flow payout ratio of 35.51%.
- • Conservative debt profile with Net Debt/EBITDA at 1.78x, demonstrating financial resilience.
⚠ What to Watch
- • Fundamental strategy mismatch: Operates in the fashion and luxury sector, which relies on fickle discretionary spending and is explicitly excluded from this essential services strategy.
- • Current dividend yield of 2.76% fails to meet the strict 3.0% minimum requirement.
- • Valuation remains elevated with a TTM P/E of 21.56, well above the 8-15x target range despite recent market pullbacks.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.