LVMH Moët Hennessy

: Louis Vuitton SE equity research valuation

Abstract

This dissertation aims to determine the fair share price of the LVMH Moët Hennessy - Louis Vuitton SE stock and provide an investment recommendation to either buy, hold or sell, having in consideration the share price on December 1st, 2023, €699,20. Two different scenarios, regarding the macroeconomic context, were set and one valuation process was made for each scenario. Since LVMH is a large group of multi-sector businesses, a disaggregated DCF valuation was the chosen option to account for the different risks and growth stages among segments. The disaggregated results were summed to arrive at the global LVMH’s fair stock price and weights were attributed to both scenarios (according to the probability of occurrence of each one). Relative valuation was performed to compare its result with the DCF model one, as well as sensitivity analysis, regarding LVMH’s most important segment. Based on all the analysis and valuations performed, a buy recommendation was suggested with a share price target of €1.053. In the end, this dissertation’s results were compared with the ones from a Morgan Stanley’s report about LVMH.

Date of Award	24 Jan 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	José Carlos Tudela Martins (Supervisor)