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EssilorLuxottica Société anonyme (1EL) Fair Value & Analysis

Healthcare · IT · Market cap €79.1B

ES EssilorLuxottica Société anonyme 1EL · MI
Price€172.45
Fair Value€70.52
Upside-59.1%
Quality52/100
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Healthy Growth
Thin margins · 8.1% net margin
Low debt · generates free cash flow
2.28% dividend yield
Narrow moat 37/100
Evidence: High Range €52.89 – €89.66 Share as image

Fair value as of: Jul 3, 2026

From 26 valuation models · updated 35 days ago

Share price −2.0% over the past month.

A solid business, but screening 59% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (€89.66). The favourable scenario is already priced in.
  • Solid but not exceptional quality (52/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

€313.26 €121.78 Fair Value €70.52 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 3, 2026.

How to read this chart

60‑month range €121.78 – €313.26 · fair‑value band €52.89 – €89.66 · the €172.45 price screens above the €70.52 fair value. Dashed = 300-day average. As of Jul 3, 2026.

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Analysis

EssilorLuxottica Société anonyme (1EL) currently trades at €172.45, while our model-based Fair Value estimate is €70.52, implying the stock looks roughly 59.1% overvalued today. We read business quality at 52/100 (solid quality), in the Healthcare sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, EssilorLuxottica Société anonyme generated revenue of €28.5B at a net margin of 8.1%. Revenue grew 9.4% year over year. It earns a return on equity of 6.1%. Net debt stands at €7.3B. Fundamentals as of Jul 3, 2026

Our scenario range runs from €52.89 (bear case) to €89.66 (bull case); at €172.45, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 46% below its 52-week high and 7% above its 52-week low, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -31% fair-value upside, at -59%, 1EL screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF €87.12 €132.14 €196.39 80
Residual Income €66.53 €68.46 €69.15 76
Rev-Margin DCF €66.65 €106.76 €152.81 74
All 26 models by family
DCF Models
FCF DCF €85.43 €136.09 €212.97 38
Owner Earnings €88.24 €140.42 €219.63 31
5Y Revenue Exit €66.65 €106.16 €155.84 39
5Y EBITDA Exit €104.55 €176.77 €260.67 41
5Y P/E Exit €68.92 €110.38 €153.28 38
10Y Revenue Exit €70.58 €108.18 €157.37 36
10Y EBITDA Exit €96.73 €157.09 €237.09 37
10Y P/E Exit €74.05 €111.10 €155.42 35
Earnings-Based
Graham-Dodd €34.25 €104.41 €138.58 54
Lynch FV €22.39 €31.99 €41.58 50
PEG = 1.0 €22.39 €31.99 €41.58 46
EPV €48.17 €57.39 €65.45 59
Dividend Discount
Gordon GGM €10.93 €22.72 €36.05 70
DDM Multi-Stage €10.93 €17.91 €23.85 61
Multiples
P/E Multiple €75.56 €100.74 €125.93 63
P/S Multiple €64.22 €85.63 €107.04 58
P/B Multiple €64.22 €85.63 €107.04 55
EV/EBIT €92.09 €125.15 €158.22 53
EV/EBITDA €130.08 €175.81 €221.55 54
EV/Revenue €59.75 €88.41 €117.07 43
Asset-Based
NCAV (Graham) €42.31 €56.69 €84.62 50
Growth DCF
Growth DCF €87.12 €132.14 €196.39 80
Rev-Margin DCF €66.65 €106.76 €152.81 74
Economic Profit
Residual Income €66.53 €68.46 €69.15 76
ROIC Compounder €48.17 €57.39 €65.45 72
Growth Earnings
Growth-Adj P/E €62.35 €89.07 €115.79 68

Widest divergence: DCF Models (€111.10) versus Dividend Discount (€17.91). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) €28.5B
Revenue growth (YoY) +9.4%
Net margin 8.1%
Return on equity 6.1%
Free cash flow €3.8B FY2025
P/E ratio 34.6
More key figures
Operating margin 10.2%
EPS (TTM) €4.98
Dividend yield 2.3%
EPS growth (YoY) -7.7%
Net debt €7.3B FY2025

Figures from reported company fundamentals · as of Jul 3, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 63 · Market factors (momentum, volatility) 33

Profitability 37
Margins and returns on capital today
Quality Growth 45
Are margins and returns improving?
Cashflow 72
Earnings quality: real cash, not paper profit
Fin. Strength 73
Balance sheet, leverage, solvency risk
Investment 89
Disciplined investing over empire-building
Low Volatility 82
Calm price path (market factor)
Momentum 17
Price trend over the last 3–12 months (market factor)
52W Momentum 4
Distance to the 52-week high (market factor)
Net Issuance 68
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

EssilorLuxottica Société anonyme 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.

Full company description

EssilorLuxottica Société anonyme 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. 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 Société anonyme in October 2018. EssilorLuxottica Société anonyme was founded in 1849 and is headquartered in Paris, France.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

EssilorLuxottica Société anonyme 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.

Growth Quality 69/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
€28.5B
Latest YoY
+7.5%
Avg. growth/yr (3Y)
+5.2%
Revenue +9.5%/yr
FY21 €19.8B
FY22 €24.5B
FY23 €25.4B
FY24 €26.5B
FY25 €28.5B
Net income +12.4%/yr
FY21 €1.4B
FY22 €2.2B
FY23 €2.3B
FY24 €2.4B
FY25 €2.3B

1EL screens 59% overvalued. Compare with Intuitive Surgical, Inc →

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Cite: Fair Value Calculator (2026). "EssilorLuxottica Société anonyme Fair Value". https://www.fairvalue-calculator.com/stock/1EL

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

Is EssilorLuxottica Société anonyme (1EL) overvalued or undervalued?
As of Jul 3, 2026, our model estimates a fair value of €70.52 versus a price of €172.45, about −59% (overvalued).
What is the fair value of 1EL?
Our model-based fair value for EssilorLuxottica Société anonyme is €70.52 (as of Jul 3, 2026), built from audited fundamentals. The current price is €172.45.
What is the quality score of 1EL?
EssilorLuxottica Société anonyme has a Quality Score of 52/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of EssilorLuxottica Société anonyme (1EL)?
EssilorLuxottica Société anonyme reported trailing-twelve-month revenue of about €28.5B (latest available figure, as of Jul 3, 2026).
What is the net profit margin of 1EL?
The net profit margin of EssilorLuxottica Société anonyme is about 8.1%, meaning it keeps roughly 8.1% of revenue as net income. Based on the latest reported figures.
Does EssilorLuxottica Société anonyme pay a dividend?
EssilorLuxottica Société anonyme currently shows a dividend yield of about 2.28% relative to its recent price (as of Jul 3, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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