At this time, the firm appears to be overvalued. LOreal SA secures a last-minute Real Value of USD266.31 per share. The latest price of the firm is USD328.78. Our model forecasts the value of LOreal SA from analyzing the firm fundamentals such as Profit Margin of 0.15 %, current valuation of 180.86 B, and Return On Equity of 0.23 as well as examining its technical indicators and probability of bankruptcy.
Enterprise Value
180.9 B
Overvalued
Today 328.78
Please note that LOreal SA's price fluctuation is very steady at this time. Calculation of the real value of LOreal SA is based on 3 months time horizon. Increasing LOreal SA's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the LOreal stock is determined by what a typical buyer is willing to pay for full or partial control of LOreal SA. Since LOreal SA is currently traded on the exchange, buyers and sellers on that exchange determine the market value of LOreal Stock. However, LOreal SA's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical
Market 328.78
Real 266.31
Hype 328.78
Naive 323.08
The intrinsic value of LOreal SA's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence LOreal SA's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of LOreal SA helps investors to forecast how LOreal stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of LOreal SA more accurately as focusing exclusively on LOreal SA's fundamentals will not take into account other important factors:
LOreal SA is presently projected to have takeover price of 180.86 B with market capitalization of 207.09 B, debt of , and cash on hands of . Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the LOreal SA fundamentals before making investing decisions based on enterprise value of the company
About 57.0% of the company shares are owned by insiders or employees . The company had not issued any dividends in recent years. Based on the key measurements obtained from LOreal SA's financial statements, LOreal SA is not in a good financial situation at this time. It has a very high probability of going through financial hardship in January.
One of the ways to look at asset utilization of LOreal is to check how much profit was generated for every dollar of assets it reports. LOreal SA makes use of its assets almost 0.1019 %, making 0.1 cents for each dollar of assets held by the firm. A growing asset utilization conveys that the company is being more effective with each dollar of assets it secures. Strictly speaking, asset utilization of LOreal SA shows how effective it operates for each dollar spent on its assets.
Covid
LOreal SA Ownership Allocation
The market capitalization of LOreal SA is USD207.09 Billion. LOreal SA holds significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please take into account that even companies with profitable outlook can generate negative future returns on their equity. If the true value of the firm is less than the current market value, you may not be able generate positive returns on investment in the long run.
LOreal SA Profitability Analysis
The company reported the revenue of 42.73 B. Net Income was 6.18 B with profit before overhead, payroll, taxes, and interest of 27.68 B.
About LOreal SA Valuation
The stock valuation mechanism determines LOreal SA's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of LOreal SA based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of LOreal SA. We calculate exposure to LOreal SA's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of LOreal SA's related companies.
When running LOreal SA's price analysis, check to measure LOreal SA's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy LOreal SA is operating at the current time. Most of LOreal SA's value examination focuses on studying past and present price action to predict the probability of LOreal SA's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move LOreal SA's price. Additionally, you may evaluate how the addition of LOreal SA to your portfolios can decrease your overall portfolio volatility.