EssilorLuxottica S. A. (EL) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of EssilorLuxottica S. A. stock €196, price €192, upside +2.2%, quality 66 out of 100. Rating: fairly valued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
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The stock costs about what our calculation considers fair.
Quality 66/100
Healthy Growth(revenue 5y +14.6 %/yr in EUR)
Low debt
Generates free cash flow
2.1% dividend yield · Sustainable
Broad data
Fair value €196.22 · Fairly valued (+2.2%)
Thin margins · 8.5% net margin (TTM)
Moderate moat56/100
Neutral coverage
Trails peers(5/14)
Quality growth
Risks from the AI analysis
🚩Intensifying competition in smart glasses and family holding governance uncertainties🚩DTC rivals like Warby Parker erode share🚩Antitrust suits target licences and dominance
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range €124.24 – €313.30 · fair‑value band €137.36 – €255.10 · the €191.95 price screens below the €196.22 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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EssilorLuxottica designs, manufactures, and distributes ophthalmic lenses, frames, sunglasses, and instruments and equipment in North America, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific.
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It offers lens, eyewear, contact lenses, reading glasses under Essilor, Varilux, Crizal, Eyezen, Stellest, Xperio, Transitions, Ray-Ban, Oakley, Barberini, KODAK Lens, Nikon, Shamir Optical, eyexpert, iWear, Humanware, Optifog, Persol, Oliver Peoples, Vogue Eyewear, Arnette, Alain Mikli, Costa, Bliz, Native Eyewear and Bolon, and Foster Grant brands.
The company also provides vision assessment, eye pathology diagnosis and treatment, finishing equipment, fitting parameter measurement, small tools, and consumables.
In addition, it offers SPECTRALIS, a multimodal imaging platform for diagnosis and treatment; RetinAI; Espansione Group; Cellview Imaging; ANTERION, a multidisciplinary all-in-one anterior segment imaging solution for measurements; apparel, footwear and accessories; and high-tech equipment for optical surfacing, polishing, measuring, coating, and finishing, as well as consumables, tools, and services under the Satisloh brand.
Further, the company designs, develops, markets, and maintains diagnostics, refraction, lens edging and mounting instruments for opticians and prescription laboratories, and measurement; and optometry instruments for eyecare professionals, schools, occupational medicine centers, military, and other institutions.
It sells its products to independent opticians, distributors, third-party e-commerce platforms, and large retail chains in the eyecare and eyewear industry; and consumers through the network of brick and mortar retail networks and its online channels.
The company was formerly known as Essilor International Société Anonyme and changed its name to EssilorLuxottica in October 2018. EssilorLuxottica was founded in 1849 and is headquartered in Paris, France.
Stock analysis
EssilorLuxottica S. A. (EL) currently trades at €191.95, while our model-based Fair Value estimate is €196.22, so the stock looks roughly fairly valued today (gap 2.2%).
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Valuation
Bull case: the DCF Models group reads highest at a median of €149.45 per share, and 4 of the 24 models we run sit above the €191.95 price.
Bear case: the Dividend Discount group reads lowest at €19.88, and 20 of the 24 models stay below the price. Data coverage for this calculation is high.
Scenario range: €137.36 (bear) to €255.10 (bull), the price of €191.95 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 66/100 (solid quality), in the Healthcare sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
EssilorLuxottica S. A. reported revenue of €28.5B in FY2025 versus €19.8B in FY2021, a compound +9.5%/yr. Reported net income was €2.3B in FY2025, compounding +12.4%/yr from FY2021.
Key figures
Market cap €89.1B Large · P/E ratio 35.9 · P/S ratio 3.04 · EPS (TTM) €5.35 · Dividend yield 2.1% · Net margin 8.5% · Return on equity 6.7% · Return on assets (EBIT) 5.1%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 56 out of 100 (medium confidence).
What moves the price
The share trades about 39% below its 52-week high and 38% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Healthcare peers we cover trades at −57% fair-value upside, at 2%, EL screens cheaper than that median.
Fair Value models
Bear€137.36Fair Value €196.22Bull€255.10
Price €191.95 · Upside +2.2%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (€1.15 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+7.5%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.2%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+14.6%
Start year 2020 (pandemic). Over 10 years: +15.5% a year
Revenue growth 24 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+11.5%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+17.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year+15.3%
Dividend (yield on the price)2.1%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.15.3% vs 3.0%, picking up
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.5% → 12%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes less growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+11.4%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+6.7%
Yearly sales growth analysts expect, extended to five years.
After inflation (euro area: IMF forecast 2.2% a year to 2030, 2.6% from 2016 to 2025) that is about +9.0% a year for the price and +4.4% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (90 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Neutral
Recent news coverage is roughly neutral, about typical for how stocks are covered.
AI conclusion: Moderate moat from brand strength and resilient demand in traditional eyewear supports the business, yet governance uncertainties and slowing wearables growth weaken its durability.
Main risk: Direct-to-consumer players such as Warby Parker and Zenni Optical could capture more customers with lower-priced online models and thereby pressure EssilorLuxottica's retail channels and margins.
Bull case: EssilorLuxottica could integrate DTC capabilities and its smart-glasses leadership to retain premium customers while expanding into new AI-enabled categories.
Bear case: If DTC models and regulatory constraints on licences intensify, EssilorLuxottica could lose significant share in core eyewear and face limits on its brand-partner ecosystem.
EssilorLuxottica shows resilient demand in traditional eyewear and medtech even while wearables growth has slowed sharply from prior quarters. At the same time, intensifying competition in smart glasses and ongoing uncertainties around the controlling family's holding company governance create clear risks of disruption to the core model. Will the strength of established segments prove more durable than the threats from new technology and ownership questions?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Medical Instruments & Supplies · 181 stocks
Beats the industry median on 5/14 measures
Overall it trails its industry peers.
Valuation
Quality Score66 · Above median
Fair Value upside+2.2% · Above median
Profitability
Return on equity (12 months)6.7% · Below median
Return on assets3.6% · Below median
Net margin (12 months)8.5% · Above median
Operating margin (12 months)15.4% · Above median
Growth and dividend
Revenue growth (quarter YoY)5.7% · Below median
Dividend yield (12 months)2.1% · Above median
Balance sheet
Debt / equity0.18× · Above median
Valuation Multiplesvs Medical Instruments & Supplies median · lower = cheaper
P/E (12 months)35.9× · Pricier than median
P/B2.29× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
P/S (12 months)3.04× · Pricier than median
Price / free cash flow (fiscal year)23.7× · Pricier than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "EssilorLuxottica S. A. Fair Value". https://www.fairvalue-calculator.com/stock/EL.PA
Frequently asked questions
Is EssilorLuxottica S. A. (EL) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of €196.22 versus a price of €191.95, about +2% upside (fairly valued).
What is the fair value of EL?
Our model-based fair value for EssilorLuxottica S. A. is €196.22 (as of Nov 6, 2026), built from audited fundamentals. The current price: €191.95.
What is the quality score of EL?
EssilorLuxottica S. A. has a Quality Score of 66/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for EssilorLuxottica S. A. (EL)?
Our model-based price target is the fair value of €196.22 (as of Nov 6, 2026) from 24 valuation models. Cautious scenario €137.36, optimistic scenario €255.10. It is a calculation from audited fundamentals, not an analyst target.
What is the EssilorLuxottica S. A. stock forecast for 2026?
Our models put fair value at €196.22, about +2% upside versus a price of €191.95 (fairly valued). Cautious scenario €137.36, optimistic scenario €255.10. The calculation is refreshed regularly with new filings.
What is the revenue of EssilorLuxottica S. A. (EL)?
EssilorLuxottica S. A. reported trailing-twelve-month revenue of about €29.3B (latest available figure, as of Nov 6, 2026).
Does EssilorLuxottica S. A. pay a dividend?
EssilorLuxottica S. A. currently shows a dividend yield of 2.08% relative to its recent price (as of Nov 6, 2026).
What growth is priced into EssilorLuxottica S. A. (EL)?
For today's price to be fair in a discounted-cash-flow model, EssilorLuxottica S. A. would have to grow free cash flow by +11.4 % per year for five years (discount rate 8.7 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +14.6 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of EL use?
Our models discount EssilorLuxottica S. A. at 8.7 %: a base by market capitalisation (large), damped by beta 0.57, country premium for France. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For EssilorLuxottica S. A. that is +11.4 % per year a year over ten years, using the same discount rate (8.7 %) and the same formula as our fair value.
How much growth has EssilorLuxottica S. A. (EL) delivered so far?
Over the past 5 years revenue at EssilorLuxottica S. A. grew +14.6 % a year. The price currently implies +11.4 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of EssilorLuxottica S. A. (EL) growing?
The median revenue growth in the sector is +6.2 % a year. That is the yardstick for the growth priced into EssilorLuxottica S. A. (+11.4 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of EssilorLuxottica S. A. (EL)?
The free-cash-flow yield on the price is 4.22 %: that much free cash flow EssilorLuxottica S. A. produces per unit of market value. When it exceeds the discount rate of our models (8.7 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of EssilorLuxottica S. A. (EL)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For EssilorLuxottica S. A. it is €196.22 per share (as of Nov 6, 2026), against a price of €191.95. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is EssilorLuxottica S. A. stock overvalued or undervalued in 2026?
As of Nov 6, 2026, EL trades below its calculated fair value: price €191.95, fair value €196.22, a gap of about +2% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of EL?
No. The price is what the market pays today (€191.95); the fair value is what the company's own numbers justify (€196.22). For EssilorLuxottica S. A. the two are €4.27 per share apart. That gap is exactly why we show both numbers side by side.
How much is EssilorLuxottica S. A. worth?
The market values EssilorLuxottica S. A. at about €89.1B (market capitalisation, as of Nov 6, 2026). Per share that is €191.95; our models calculate a fair value of €196.22 per share.
What do the bullish and bearish scenarios say about EL?
Our models span a range for EssilorLuxottica S. A.: cautious scenario €137.36, base €196.22, optimistic €255.10 per share (as of Nov 6, 2026, price €191.95). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of EL?
EssilorLuxottica S. A. trades at a price-to-earnings ratio of 35.9 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of €196.22 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings: 40.9. Other multiples: PEG 1.6, P/B 2.3, P/S 3.0, EV/EBITDA 15.8.
What is the PEG ratio of EL?
The PEG ratio of EssilorLuxottica S. A. is 1.58 (P/E divided by earnings growth, as of Nov 6, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of EssilorLuxottica S. A. (EL)?
Balance-sheet figures for EssilorLuxottica S. A. (as of Nov 6, 2026): return on equity 6.7%, debt of 0.18 per unit of equity. They feed the Quality Score of 66/100, which measures business quality independently of the share price.
How far is EL from its 52-week high?
EssilorLuxottica S. A. trades at €191.95, about 39% below its 52-week high of €313.30 and 38% above the low of €139.00 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of €196.22 is for.
Which stocks are comparable to EssilorLuxottica S. A.?
From the same area (Healthcare) we also value Intuitive Surgical, Inc, Becton, Dickinson and Company, Medline Inc, Alcon Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is EssilorLuxottica S. A. stock attractive at the current price?
The data as of Nov 6, 2026: price €191.95, calculated fair value €196.22 (+2%), Quality Score 66/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of EL calculated?
We run EssilorLuxottica S. A. through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of €196.22, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. EssilorLuxottica S. A. currently trades 2% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of EssilorLuxottica S. A. (EL)?
The closing price on Nov 5, 2026 was €191.95. Our model-based fair value is €196.22, about +2% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with EssilorLuxottica S. A. right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range (€137.36 to €255.10) leaves room in how you read the outcome.
Where does the earnings growth of EssilorLuxottica S. A. (EL) come from?
Earnings per share at EssilorLuxottica S. A. grew +3.1 % a year from 2014 to 2025. Broken into its drivers: revenue per share +7.7 %, EBIT margin −4.0 %, tax rate +0.0 %, residual (interest, one-offs) −0.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of EssilorLuxottica S. A.
How large is the market capitalisation of EssilorLuxottica S. A. (EL)?
The market capitalisation of EssilorLuxottica S. A. is €89.1B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of EssilorLuxottica S. A. (EL)?
The price-to-sales ratio of EssilorLuxottica S. A. is 3.04 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of EssilorLuxottica S. A. (EL)?
Earnings per share at EssilorLuxottica S. A. are €5.35 (price ÷ EPS = P/E 35.9). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of EssilorLuxottica S. A. (EL)?
The dividend yield of EssilorLuxottica S. A. is 2.1% (payout 74.8%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of EssilorLuxottica S. A. (EL)?
The net margin of EssilorLuxottica S. A. is 8.5% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of EssilorLuxottica S. A. (EL)?
The return on equity (ROE) of EssilorLuxottica S. A. is 6.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of EssilorLuxottica S. A. (EL)?
On an EBIT basis the return on assets of EssilorLuxottica S. A. is 5.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of EssilorLuxottica S. A. (EL)?
The operating margin of EssilorLuxottica S. A. is 15.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at EssilorLuxottica S. A. (EL)?
Revenue at EssilorLuxottica S. A. is growing +5.7% versus a year earlier (3y avg +5.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at EssilorLuxottica S. A. (EL)?
Earnings per share at EssilorLuxottica S. A. are growing +12.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does EssilorLuxottica S. A. (EL) carry?
The net debt of EssilorLuxottica S. A. is €13.5B (fiscal year 2025, ≈ 3.6 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 6, 2026