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EssilorLuxottica S. A. (EL) Fair Value & Analysis

Healthcare · FR · Market cap €78.8B · ISIN FR0000121667

What is EssilorLuxottica S. A. really worth?

ES EssilorLuxottica S. A. EL · PA
Price€149.80
Fair Value€94.93
Upside−36.6%
Quality63/100

A solid business, but trading 58% above our fair value of €94.93.

As of Sep 1, 2026, the fair value of EssilorLuxottica S. A. is €94.93 per share against a price of €149.80, so the fair value sits 37% below the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Strengths

Healthy Growth (revenue 5y +14.6 %/yr)
Low debt · generates free cash flow

Risks

!Thin margins · 8.1% net margin
!Trails peers (5/15)
!Moderate moat 53/100
!Weak on past: 24 out of 100

For context

·2.67% dividend yield
Evidence: High Range €67.19 – €126.01

Fair value as of: Sep 1, 2026

From 26 valuation models · updated 5 days ago

Share price −12.6% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (€126.01). The favourable scenario is already priced in.
  • Solid but not exceptional quality (63/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (€67.19 to €126.01) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

€313.30 €124.24 Fair Value €94.93 Jul 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 1, 2026.

How to read this chart

60‑month range €124.24 – €313.30 · fair‑value band €67.19 – €126.01 · the €149.80 price screens above the €94.93 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 1, 2026.

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Analysis

EssilorLuxottica S. A. (EL) currently trades at €149.80, while our model-based Fair Value estimate is €94.93, implying the stock looks roughly 57.8% overvalued today. The Quality Score stands at 63/100 (solid quality), in the Healthcare sector. Bull case: the DCF Models group reads highest at a median of €142.69 per share, and 7 of the 26 models we run sit above the €149.80 price. Bear case: the Dividend Discount group reads lowest at €19.16, and 19 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, EssilorLuxottica S. A. 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 €13.5B. Fundamentals as of Sep 1, 2026

Our scenario range runs from €67.19 (bear case) to €126.01 (bull case); at €149.80, 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 53% below its 52-week high, currently below its 200-day average. For context, the median of 10 Healthcare peers we cover trades at −46% fair-value upside, at −37%, EL screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly €0.6754 per share, which is 0.7 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

Model 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. Evidence
Highest evidence
FCF DCF €98.50 €183.97 €332.62 77
Residual Income €66.53 €68.46 €69.15 76
Growth DCF €97.73 €176.26 €309.25 75
All 26 models by family
DCF Models
FCF DCF €98.50 €183.97 €332.62 77
Owner Earnings €102.34 €190.92 €344.98 73
5Y Revenue Exit €71.43 €125.14 €197.11 71
5Y EBITDA Exit €119.43 €224.06 €355.80 73
5Y P/E Exit €78.83 €140.39 €210.18 69
10Y Revenue Exit €77.40 €131.52 €212.75 65
10Y EBITDA Exit €111.50 €203.98 €345.55 66
10Y P/E Exit €84.58 €142.69 €223.69 62
Earnings-Based
Graham-Dodd €34.25 €158.69 €217.95 64
Lynch FV €41.82 €59.74 €77.66 61
PEG = 1.0 €41.82 €59.74 €77.66 57
EPV €46.95 €55.96 €63.85 74
Dividend Discount
Gordon GGM €10.93 €22.72 €36.05 66
DDM Multi-Stage €10.93 €19.16 €23.85 66
Multiples
P/E Multiple €83.11 €110.82 €138.52 63
P/S Multiple €64.22 €85.63 €107.04 58
P/B Multiple €64.22 €85.63 €107.04 55
EV/EBIT €86.13 €117.21 €148.29 66
EV/EBITDA €140.80 €190.10 €239.40 67
EV/Revenue €59.44 €87.96 €116.48 53
Asset-Based
NCAV (Graham) €42.31 €56.69 €84.62 54
Growth DCF
Growth DCF €97.73 €176.26 €309.25 75
Rev-Margin DCF €71.43 €124.35 €192.78 71
Economic Profit
Residual Income €66.53 €68.46 €69.15 76
ROIC Compounder €46.95 €55.96 €63.85 72
Growth Earnings
Growth-Adj P/E €68.50 €97.85 €127.21 67

Widest divergence: DCF Models (€142.69) versus Dividend Discount (€19.16). Highest evidence: FCF DCF (77).

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Key figures & financial health

P/E ratio 30.1
P/S ratio 2.45 P/E × margin
EPS (TTM) €4.97 price ÷ EPS = P/E 30.1
Dividend yield 2.7% payout 80.5%
Net margin 8.1% FY2025
Return on equity 6.1% TTM
More key figures
Profitability
Return on assets (EBIT) 5.1% avg 5y
Operating margin 10.2% TTM
Growth
Revenue (TTM) €28.5B TTM
Revenue growth (YoY) +9.4% 3y avg +5.2%
EPS growth (YoY) −7.7%
Balance sheet & cash flow
Free cash flow €3.8B FY2025
Net debt €13.5B FY2025 · ≈ 3.6 yrs of FCF

Figures from reported company fundamentals · as of Sep 1, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 63/100

Of which business quality 63 · Market factors (momentum, volatility) 29

Profitability 37
Margins and returns on capital today
Quality Growth 42
Are margins and returns improving?
Cashflow 72
Earnings quality: real cash, not paper profit
Fin. Strength 75
Balance sheet, leverage, solvency risk
Investment 89
Disciplined investing over empire-building
Low Volatility 80
Calm price path (market factor)
Momentum 12
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 70
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

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 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.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
€28.5B
Latest YoY
+7.5%
Avg. revenue growth/yr (3Y) 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.
+5.2%
Avg. revenue growth/yr (5Y) 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.
+14.6%
Avg. revenue growth/yr (24Y) 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.
+11.5%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+18.0% · in EUR
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+15.3%
Dividend yield2.7%
Trend 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.5Y 15.3% vs 10Y 3.0%, picking up
Operating margin (EBIT) 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.5.0% (2020) → 11.8% (2025) · rising
Worst earnings drop94% (2020) · in EUR
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
Character of growth · EPS growth decomposed (2014-2025) +3.1 % p.a.
Revenue per share +7.7 %

of which total revenue +17.0 % · buybacks/dilution −8.0 %

EBIT margin −4.0 %
Tax rate +0.0 %
Residual (interest, one-offs) −0.3 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

EL screens 58% overvalued. Compare with Intuitive Surgical, Inc →

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Cite: Fair Value Calculator (2026). "EssilorLuxottica S. A. Fair Value". https://www.fairvalue-calculator.com/stock/EL.PA

Recent news

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

Peer Group

Medical Instruments & Supplies · 194 stocks

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.

Quality Score 63 · Above median
Fair Value upside −37% · Below median
Return on equity (TTM) 6% · Below median
Return on assets 3% · Above median
Net margin (TTM) 8% · Above median
Operating margin (TTM) 10% · Below median
Revenue growth 9% · Above median
Dividend yield (TTM) 2.7% · Above median
Debt / equity 0.18× · Higher than median

Valuation Multiples vs Medical Instruments & Supplies median · lower = cheaper

P/E (TTM) 30.1× · Pricier than median
P/B 2.35× · Pricier than median
P/S (TTM) 3.21× · Pricier than median
P/FCF 24.3× · Pricier than 75% of peers
EV/EBITDA 17.0× · Pricier than median
PEG 1.65× · Pricier than median

What the price implies (reverse DCF)

The inverse question: what free-cash-flow growth must EssilorLuxottica S. A. deliver for ten years so that today's price is fair in our DCF model? Same formula, same discount rate as the fair value.

Implied FCF growth, 10 years+5.8 % per year
Achieved revenue growth, 5 years+14.6 % p.a.
Sector median revenue growth+4.4 %
FCF yield on price5.41 %
Discount rate (WACC) in the models8.7 %

The price demands less growth than the company recently delivered: even a weaker business would justify the price. Ranking of the largest stocks →

Context: sector, industry, market

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE47 · sector 29
PAST24 · sector 26
HEALTH91 · sector 96
DIVIDEND53 · sector 30

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

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

Similar stocks

10 more Medical Instruments & Supplies stocks, each showing price versus our Fair Value estimate (as of Sep 1, 2026).

Stock Price Fair Value vs Fair Value
Intuitive Surgical, Inc ISRG $366.70 $150.04 −59%
Medline Inc MDLN $36.59 $30.15 −18%
Becton, Dickinson and Company BDX $187.12 $100.46 −46%
Alcon Inc ALC $70.50 $39.78 −44%
ResMed Inc RMD A$33.19 A$26.23 −21%
West Pharmaceutical Services, Inc WST $337.47 $141.58 −58%
Sartorius Stedim Biotech S.A DIM €197.70 €48.88 −75%
Straumann Holding STMN CHF 97.38 CHF 47.31 −51%
Sartorius Aktiengesellschaft SRT3 €237.20 €63.30 −73%
Coloplast A/S COLOB kr 435.80 kr 382.22 −12%

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Frequently asked questions

Is EssilorLuxottica S. A. (EL) overvalued or undervalued?
As of Sep 1, 2026, our model estimates a fair value of €94.93 versus a price of €149.80, about −37% upside (overvalued).
What is the fair value of EL?
Our model-based fair value for EssilorLuxottica S. A. is €94.93 (as of Sep 1, 2026), built from audited fundamentals. The current price: €149.80.
What is the quality score of EL?
EssilorLuxottica S. A. has a Quality Score of 63/100. 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 €94.93 (as of Sep 1, 2026) from 26 valuation models. Cautious scenario €67.19, optimistic scenario €126.01. 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 €94.93, about −37% upside versus a price of €149.80 (overvalued). Cautious scenario €67.19, optimistic scenario €126.01. 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 €28.5B (latest available figure, as of Sep 1, 2026).
What is the net profit margin of EL?
The net profit margin of EssilorLuxottica S. A. is about 8.1%, meaning it keeps roughly 8.1% of revenue as net income. Based on the latest reported figures.
Does EssilorLuxottica S. A. pay a dividend?
EssilorLuxottica S. A. currently shows a dividend yield of about 2.67% relative to its recent price (as of Sep 1, 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 +5.8 % per year for ten years (discount rate 8.7 %, then 2 % perpetual growth). Over the last 5 years revenue grew +14.6 % per year. As of Sep 1, 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 0.54, country premium for France. The same rate applies in all 26 models.
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