Le billet of Monocle

LVMH, Correction You Say?

21 September 2021

At €630, LVMH shares are trading 11% lower than their mid-August high of €710. The financial press is therefore talking about a correction.

LVMH is now valued at €310 billion.
And the company is poised to generate €10 billion in net margin this year.
Price Earning Ratio = 31x.

Since the bubble burst in 2000, LVMH has been valued on average 17x its net income. This means that today, its share price costs almost 2x more, for the same net income.

So don't talk to me about correction.

The real correction is when the price returns to rational levels.
That is, at best, 20x the net result. Which gives €400 per share.
Expected correction = -37%

Have a great week,

Charles

Disclaimer

This presentation is a promotional document. The content of this document is communicated by and is the property of Monocle Asset Management. Monocle Asset Management is a portfolio management company approved by the Autorité des Marchés Financiers under number GP-20000040 and registered with the ORIAS as an insurance broker under number 10058146. No information contained in this document should be construed as having any contractual value. This document is produced for information purposes only. The prospects mentioned are subject to change and do not constitute a commitment or a guarantee. Access to the products and services presented here may be subject to restrictions for certain persons or countries. Tax treatment depends on individual circumstances. The fund mentioned in this document (Monocle Fund SICAV) is authorized for marketing in France and possibly in other countries where the law permits. Before making any investment, it is advisable to check whether the investor is legally entitled to subscribe to the fund. The risks, costs and recommended investment period of the funds presented are described in the KIDD (key investor information documents) and the prospectus, available free of charge from Monocle Asset Management and on the website. The KIDD must be given to the subscribers before the subscription. Past performances are not a reliable indicator of future performances. Monocle Asset Management cannot be held responsible for any decision taken or not taken on the basis of information contained in this document, nor for the use that could be made by a third party. The investor may lose all or part of the amount of capital invested, as the funds are not capital guaranteed.

To unsubscribe or for any information request, you can email us at monocle@monocle.lu

Fermer

How to invest?

Important à savoir