-Markey cap: 279,848 Dividend: 279,848 * 1,08% = 3,022B MC's dividend payments are covered by earnings. 30/06/2020 Dividend yield: 1,2% 30/06/2020 Dividend per share: €4,8 Earnings per share: €8,793 -PE ratio < 25: 59,61 -Profit margin > 10%: 10,53% -Revenue growth past 5 years: yes (2020) 44,636m - (2016) 37,6m -Profit growth past 5 years: yes (2020) 4,702m - (2016) 3,981m -# shares outstanding declining: no. (2020) 504m - (2016) 502m -Current assets > current liabilities: yes TA 108,671> TC 69,842 -FCF growth: yes (2020) 8,378 - (2016) 3,971 -price to FCF: €305,80
If I missed something pls let me know I'm just 16 and just want to learn as much as I can. As much as I love LVMH my own research says the stock is overvalued. I hope I can help someone with this. sources: yahoo finance & documents-financiers-2020_va_v2 (search investor relations lvmh - documents)
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how I became my fair value:
free cashflow last 5 years / 5 (8,378+8,422+5,349+4,685+3,971) / 5 = 6,161 FCF * wanted PE ratio = wanted market cap 6,161 * 25 = 154,025B Market cap 25/03/2021: 279,848B price per share: €555,60 154,025 / 279,848 = 0,55 555,60 * 0,55 = €305,80
you're basing your evaluation solely on past performance instead of future growth opportunities
Vermeire
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@klho_dk yes, I now see that. I haven’t learned how to calculate the future opportunities in my calculation. Do you now how to do this?
klho_dk
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@Vermeire, most simple way is to read the companys forecast in their annual and quarterly reports.
from the recent one you learn that:
1: LVMH recently upgraded their growth targets from 18% to 25% on the back of the growth in china and us post covid, and the potential windfalls in the next few years.
2: they recently bought tiffany and birkenstock, and its a pretty cyclical proof stock to begin with. (both strategic brands with good growth)
3: they expect massive organic growth aswell
which taken all together just raised a few analysts targets fx: invest securities upgraded LVMH from 538 to 634 as fair value.
Vermeire
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@klho_dk thanks a lot. I still want to find a way to calculate it myself .
Vermeire
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I have a few more of these analysis I made on stocks. KOJMIAAAPLPFE IMMO.BEL ...