Equity Valuation LVMH Moët Hennessy - Louis Vuitton SE
Equity Valuation LVMH Moët Hennessy - Louis Vuitton SE Miguel Oliveira Dissertation written under the supervision of Professor José Carlos Tudela Martins Dissertation submitted in partial fulfilment of requirements for the MSc in Finance, at the Universidade Católica Portuguesa, 20th April 2020. EQUITY RESEARCH 6 March 2020 Lisbon, Portugal Personal Luxury Goods LVMH Moët Hennessy Louis Vuitton EXECUTIVE SUMMARY (LVMH.PA) Recommendation: HOLD Profile: LVMH is a French conglomerate specialized in the Price (06/03/20): €360,35 manufacturing and marketing of personal luxury goods. It is the 12m Price Target: €400,00 world’s leading luxury goods vendor, operating in 5 distinct segments: Upside: 11,00% Fashion & Leather Goods, Selective Retailing, Perfumes & Cosmetics, Key Data Wines & Spirits, and Watches & Jewelry. The group gathers more than Market Cap: €181.987mn 70 well-known brands, including: Louis Vuitton, Christian Dior, Dom 52-week high (17/01/20): €439,05 52-week low (08/03/19): €305,80 Pérignon, Hennessy, Moët & Chandon, Bvlgari and Sephora. # Shares Outstanding: 505mn HOLD Recommendation: This study sets a 12-month price target of Headquarters: Paris, France €400,00 per stock, reflecting a potential upside of 11% in comparison Industry: Personal Luxury Goods to the current price, which considering the current economic Forecast Summary uncertainty, results in a hold recommendation. The price target was estimated through a sum-of-the-parts WACC-based DCF valuation supported by a thorough analysis of available industry and macroeconomic information, and the company’s past performance. Growth Drivers: The group’s biggest brands, i.e., Louis Vuitton, Dior, Hennessy and Moët & Chandon, as well as, the continued growth Stock Price Performance of China’s middle class are expected to be the group’s main drivers of future growth.
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