Hermes International SCA (RMS) fair value: what the stock is really worth
As of Nov 9, 2026: fair value (intrinsic value) of Hermes International SCA stock €1,499, price €1,354, upside +10.7%, quality 79 out of 100. Rating: fairly valued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
The stock costs about what our calculation considers fair.
Quality 79/100
Healthy Growth(revenue 5y +20.2 %/yr in EUR)
Highly profitable · 28.0% net margin (TTM)
Low debt
Generates free cash flow
1.3% dividend yield · Well covered
Wide moat97/100
Broad data
25% return on equity.
Fair value €1,499 · Fairly valued
Mixed vs. peers(7/15)
Negative coverage
Quality growth
Risks from the AI analysis
🚩Price drop: Growth slowdown from stagnating China demand🚩Sharp weakening of Chinese demand for luxury goods🚩Heavy reliance on Chinese market🚩Technological lag versus peers
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 7, 2026.
How to read this chart
60‑month range €933.60 – €2,781 · fair‑value band €967.29 – €1,842 · the €1,354 price screens below the €1,499 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 7, 2026.
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Hermès International engages in the production, wholesale, and retail of various goods.
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The company offers leather goods and saddlery, such as bags for men and women, travel articles, small leather goods and accessories, saddles, bridles, and various equestrian products and clothing; ready-to-wear garments for men and women; and accessories, including jewelry, belts, hats, gloves, internet of things products, and shoes.
It also provides silk and textiles for men and women; art of living and tableware products; beauty and perfume products; and watches.
In addition, the company is involved in weaving, engraving, printing, dyeing, finishing, and producing textiles; purchasing, tanning, dyeing, finishing, and selling tanneries and precious leathers; and creating and producing of metal parts.
It sells its products through a network of stores in France, rest of Europe, Japan, the Asia Pacific, the Americas, and the Middle East, as well as sells watches, perfumes, and tableware through a network of specialized stores. The company was founded in 1837 and is headquartered in Paris, France.
Hermès International is a subsidiary of H51 SAS.
Stock analysis
Hermes International SCA (RMS) currently trades at €1,354, while our model-based Fair Value estimate is €1,499, so the stock looks roughly fairly valued today (gap 9.7%).
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Valuation
Bull case: the DCF Models group reads highest at a median of €1,019 per share, and 1 of the 26 models we run sit above the €1,354 price.
Bear case: the Dividend Discount group reads lowest at €406.68, and 25 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: €967.29 (bear) to €1,842 (bull), the price of €1,354 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 79/100 (high quality), in the Consumer Cyclical sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Hermes International SCA reported revenue of €16.0B in FY2025 versus €9.0B in FY2021, a compound +15.5%/yr. Reported net income was €4.5B in FY2025, compounding +16.6%/yr from FY2021.
Key figures
Market cap €142B Large · P/E ratio 31.5 · P/S ratio 8.87 · EPS (TTM) €43.00 · Dividend yield 1.3% · Net margin 28.0% · Return on equity 25.5% · Return on assets (EBIT) 27.0% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 97 out of 100 (medium confidence).
What moves the price
The share trades about 39% below its 52-week high and 9% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at 25% fair-value upside, at 11%, RMS screens richer than that median.
Fair Value models
Bear€967.29Fair Value €1,499Bull€1,842
Price €1,354 · Upside +10.7%
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 (€21.44 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.100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+5.5%
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.
+11.3%
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.
+20.2%
Start year 2020 (pandemic). Over 10 years: +12.7% 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.
+11.3%
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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.
+25.6%
Earnings growth per share plus dividend.
Earnings per share, growth per year+24.3%
Dividend (yield on the price)1.3%
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.24.3% vs 16.6%, 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.32% → 41%
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).
+17.1%
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.
+6.0%
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 +14.6% a year for the price and +3.8% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (98 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.Negative
Recent news coverage is more negative than average.
AI conclusion: Solid margins and returns form the main strength, while limited evidence on innovation, processes and brand effects leaves the overall moat only moderate.
Main risk: A sustained economic slowdown or policy shifts in China, which generates around 42 percent of revenue via the Asia-Pacific region, could sharply reduce demand for its products and squeeze margins.
Bull case: By expanding production capacity in new regions and deepening relationships with high-net-worth clients outside Asia, Hermès could reduce its exposure to any single market while preserving its craftsmanship focus.
Bear case: If Chinese demand remains subdued for years and peers pull ahead through superior data-driven operations, Hermès could face slower volume growth, margin compression and gradual loss of exclusivity perception.
Hermès is expanding leather goods production with one new workshop per year in France to support its ambitious medium-term revenue growth target at constant exchange rates. Recent quarters show solid gains in that core category and in the Americas, Japan and Europe, yet overall growth has slowed as China demand stagnates and other lines lag. Will the added capacity drive the targeted increase, or will weaker regional trends limit its effect?
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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.Luxury Goods · 121 stocks
Beats the industry median on 7/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score79 · Top 25%
Fair Value upside+10.0% · Above median
Profitability
Return on equity (12 months)25.5% · Top 25%
Return on assets18.6% · Top 25%
Net margin (12 months)28.0% · Top 25%
Operating margin (12 months)42.2% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)1.6% · Below median
Dividend yield (12 months)1.3% · Below median
Balance sheet
Debt / equity0.00× · Below median
Valuation Multiplesvs Luxury Goods median · lower = cheaper
P/E (12 months)31.5× · Pricier than median
P/B7.59× · Priciest 25%
P/S (12 months)8.87× · Priciest 25%
Price / free cash flow (fiscal year)32.4× · 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). "Hermes International SCA Fair Value". https://www.fairvalue-calculator.com/stock/RMS
Frequently asked questions
Is Hermes International SCA (RMS) overvalued or undervalued?
As of Nov 7, 2026, our model estimates a fair value of €1,499 versus a price of €1,354, about +11% upside (fairly valued).
What is the fair value of RMS?
Our model-based fair value for Hermes International SCA is €1,499 (as of Nov 7, 2026), built from audited fundamentals. The current price: €1,354.
What is the quality score of RMS?
Hermes International SCA has a Quality Score of 79/100. 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 Hermes International SCA (RMS)?
Our model-based price target is the fair value of €1,499 (as of Nov 7, 2026) from 26 valuation models. Cautious scenario €967.29, optimistic scenario €1,842. It is a calculation from audited fundamentals, not an analyst target.
What is the Hermes International SCA stock forecast for 2026?
Our models put fair value at €1,499, about +11% upside versus a price of €1,354 (fairly valued). Cautious scenario €967.29, optimistic scenario €1,842. The calculation is refreshed regularly with new filings.
What is the revenue of Hermes International SCA (RMS)?
Hermes International SCA reported trailing-twelve-month revenue of about €16.1B (latest available figure, as of Nov 7, 2026).
Does Hermes International SCA pay a dividend?
Hermes International SCA currently shows a dividend yield of 1.33% relative to its recent price (as of Nov 7, 2026).
How much is the dividend of Hermes International SCA (RMS) and when is the ex-dividend date?
Hermes International SCA pays a dividend of €18.00 per share a year, a dividend yield of 1.3%. The last ex-dividend date was Apr 21, 2026. A dividend has been paid every year since at least 1994. The payout ratio is 41.9% of earnings. Free cash flow covers the dividend 2.34 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Hermes International SCA (RMS)?
For today's price to be fair in a discounted-cash-flow model, Hermes International SCA would have to grow free cash flow by +17.1 % per year for five years (discount rate 9.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +20.2 % per year. As of Nov 7, 2026.
What discount rate (WACC) does the fair value of RMS use?
Our models discount Hermes International SCA at 9.9 %: a base by market capitalisation (large), damped by beta 1.04, 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 Hermes International SCA that is +17.1 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (9.9 %) and the same formula as our fair value.
How much growth has Hermes International SCA (RMS) delivered so far?
Over the past 5 years revenue at Hermes International SCA grew +20.2 % a year. The price currently implies free-cash-flow growth of +17.1 % per 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 Hermes International SCA (RMS) growing?
The median revenue growth in the sector is +4.7 % a year. That is the yardstick for the growth priced into Hermes International SCA (+17.1 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Hermes International SCA (RMS)?
The free-cash-flow yield on the price is 3.11 %: that much free cash flow Hermes International SCA produces per unit of market value. When it exceeds the discount rate of our models (9.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Hermes International SCA (RMS)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Hermes International SCA it is €1,499 per share (as of Nov 7, 2026), against a price of €1,354. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Hermes International SCA stock overvalued or undervalued in 2026?
As of Nov 7, 2026, RMS trades below its calculated fair value: price €1,354, fair value €1,499, a gap of about +11% (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 RMS?
No. The price is what the market pays today (€1,354); the fair value is what the company's own numbers justify (€1,499). For Hermes International SCA the two are €145.25 per share apart. That gap is exactly why we show both numbers side by side.
How much is Hermes International SCA worth?
The market values Hermes International SCA at about €142B (market capitalisation, as of Nov 7, 2026). Per share that is €1,354; our models calculate a fair value of €1,499 per share.
What do the bullish and bearish scenarios say about RMS?
Our models span a range for Hermes International SCA: cautious scenario €967.29, base €1,499, optimistic €1,842 per share (as of Nov 7, 2026, price €1,354). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of RMS?
Hermes International SCA trades at a price-to-earnings ratio of 31.5 (as of Nov 7, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of €1,499 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, FY2025 ex one-offs: 46.2. Other multiples: PEG 3.1, P/B 7.6, P/S 8.9, EV/EBITDA 18.6.
What is the PEG ratio of RMS?
The PEG ratio of Hermes International SCA is 3.07 (P/E divided by earnings growth, as of Nov 7, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Hermes International SCA (RMS)?
Balance-sheet figures for Hermes International SCA (as of Nov 7, 2026): return on equity 25.5%, debt of 0.00 per unit of equity. They feed the Quality Score of 79/100, which measures business quality independently of the share price.
How far is RMS from its 52-week high?
Hermes International SCA trades at €1,354, about 39% below its 52-week high of €2,218 and 9% above the low of €1,239 (as of Nov 9, 2026). Distance from the high says nothing about value: that is what the fair value of €1,499 is for.
Which stocks are comparable to Hermes International SCA?
From the same area (Consumer Cyclical) we also value Compagnie Financière Richemont SA, Christian Dior SE, Tapestry, Inc, Chow Tai Fook Jewellery Group, 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 Hermes International SCA stock attractive at the current price?
The data as of Nov 7, 2026: price €1,354, calculated fair value €1,499 (+11%), Quality Score 79/100, from 26 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 RMS calculated?
We run Hermes International SCA through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of €1,499 builds on their evidence-weighted average, 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 13.3% above its aggregate fair value. Hermes International SCA currently trades 10% 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 Hermes International SCA (RMS)?
The closing price on Nov 9, 2026 was €1,354. Our model-based fair value is €1,499, about +11% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Hermes International SCA right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range (€967.29 to €1,842) leaves room in how you read the outcome.
Where does the earnings growth of Hermes International SCA (RMS) come from?
Earnings per share at Hermes International SCA grew +18.4 % a year from 2014 to 2025. Broken into its drivers: revenue per share +13.6 %, EBIT margin +2.8 %, tax rate +0.7 %, residual (interest, one-offs) +0.8 %. 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 Hermes International SCA
How large is the market capitalisation of Hermes International SCA (RMS)?
The market capitalisation of Hermes International SCA is €142B. 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 Hermes International SCA (RMS)?
The price-to-sales ratio of Hermes International SCA is 8.87 (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 Hermes International SCA (RMS)?
Earnings per share at Hermes International SCA are €43.00 (price ÷ EPS = P/E 31.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Hermes International SCA (RMS)?
The dividend yield of Hermes International SCA is 1.3% (payout 41.9%). 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 Hermes International SCA (RMS)?
The net margin of Hermes International SCA is 28.0% (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 Hermes International SCA (RMS)?
The return on equity (ROE) of Hermes International SCA is 25.5% (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 Hermes International SCA (RMS)?
On an EBIT basis the return on assets of Hermes International SCA is 27.0% (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 Hermes International SCA (RMS)?
The operating margin of Hermes International SCA is 42.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Hermes International SCA (RMS)?
Revenue at Hermes International SCA is growing +1.6% versus a year earlier (3y avg +11.3%). 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 Hermes International SCA (RMS)?
Earnings per share at Hermes International SCA are growing −0.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Hermes International SCA (RMS) hold?
Hermes International SCA holds more cash than debt, €9.9B net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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Broad data
Nov 7, 2026