EN DE

L'Oréal S.A (ORN) Fair Value & Analysis

Consumer Defensive · MX · Market cap 4.1T MXN (≈ $241B) · ISIN FR0000120321

What is L'Oréal S.A really worth?

LO L'Oréal S.A ORN · MX
Price from Jul 15, 20267,641 MXN
Fair Value4,182 MXN
Upside−45.3%
Quality71/100

A solid business, but trading 83% above our fair value of 4,182 MXN.

As of Aug 14, 2026, the fair value of L'Oréal S.A is 4,182 MXN per share against a price of 7,641 MXN, so the fair value sits 45% below the price. A model estimate blended from multiple valuation models, recalculated regularly.

Watch L'Oréal S.A for free, get notified when fair value or trend changes. Plus fair value for all 35,000+ stocks, 14 days of Pro free, no card. Watch for free

Strengths

Healthy Growth (revenue 5y +9.5 %/yr)
Solidly profitable · 13.9% net margin
Low debt · generates free cash flow
Wide moat 67/100

Risks

!Trails peers (3/14)
!Weak on past: 22 out of 100
!Weak on dividend: 3 out of 100

For context

·0.09% dividend yield
Evidence: High Range 2,792 MXN – 5,855 MXN

Fair value as of: Aug 14, 2026

From 26 valuation models · updated 23 days ago

Fair value updated Aug 14, 2026, revised from 4,819 MXN to 4,182 MXN (−13.2%) since Jul 17, 2026. Share price +0.5% over the past month.

What runs behind every stock

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

What matters now

  • A high-quality business (quality 71/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (5,855 MXN). The favourable scenario is already priced in.
  • A fairly wide model range (2,792 MXN to 5,855 MXN) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

9,233 MXN 5,765 MXN Fair Value 4,182 MXN Apr 2021 Jul 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 14, 2026.

How to read this chart

60‑month range 5,765 MXN – 9,233 MXN · fair‑value band 2,792 MXN – 5,855 MXN · the 7,641 MXN price screens above the 4,182 MXN fair value. Dashed = 300-day average. As of Aug 14, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

L'Oréal S.A (ORN) currently trades at 7,641 MXN, while our model-based Fair Value estimate is 4,182 MXN, implying the stock looks roughly 82.7% overvalued today. The Quality Score stands at 71/100 (solid quality), in the Consumer Defensive sector. Bull case: the DCF Models group reads highest at a median of 4,289 MXN per share, and 0 of the 26 models we run sit above the 7,641 MXN price. Bear case: the Asset-Based group reads lowest at 761.14 MXN, and 26 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, L'Oréal S.A generated revenue of 44.1B MXN at a net margin of 13.9%. Revenue grew 1.0% year over year. It earns a return on equity of 18.0%. Net debt stands at 254M MXN. Fundamentals as of Aug 14, 2026

Our scenario range runs from 2,792 MXN (bear case) to 5,855 MXN (bull case); at 7,641 MXN, 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 12% below its 52-week high and 4% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Defensive peers we cover trades at −36% fair-value upside, at −45%, ORN screens richer 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 150.96 MXN per share, which is 3.6 % 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 2,823 MXN 4,427 MXN 6,976 MXN 79
Growth DCF 2,886 MXN 4,325 MXN 6,482 MXN 78
Owner Earnings 2,548 MXN 3,993 MXN 6,288 MXN 75
All 26 models by family
DCF Models
FCF DCF 2,823 MXN 4,427 MXN 6,976 MXN 79
Owner Earnings 2,548 MXN 3,993 MXN 6,288 MXN 75
5Y Revenue Exit 1,939 MXN 2,864 MXN 4,016 MXN 73
5Y EBITDA Exit 2,992 MXN 4,822 MXN 6,940 MXN 75
5Y P/E Exit 2,840 MXN 4,540 MXN 6,307 MXN 70
10Y Revenue Exit 2,176 MXN 3,103 MXN 4,298 MXN 67
10Y EBITDA Exit 2,909 MXN 4,489 MXN 6,569 MXN 68
10Y P/E Exit 2,810 MXN 4,289 MXN 6,077 MXN 64
Earnings-Based
Graham-Dodd 1,354 MXN 4,085 MXN 5,416 MXN 65
Lynch FV 869.81 MXN 1,243 MXN 1,615 MXN 61
PEG = 1.0 869.81 MXN 1,243 MXN 1,615 MXN 57
EPV 2,331 MXN 2,732 MXN 3,088 MXN 74
Dividend Discount
Gordon GGM 1,225 MXN 2,673 MXN 4,498 MXN 65
DDM Multi-Stage 1,225 MXN 2,036 MXN 2,786 MXN 66
Multiples
P/E Multiple 3,136 MXN 4,182 MXN 5,227 MXN 63
P/S Multiple 1,718 MXN 2,291 MXN 2,863 MXN 58
P/B Multiple 2,539 MXN 3,385 MXN 4,232 MXN 55
EV/EBIT 3,743 MXN 4,971 MXN 6,199 MXN 66
EV/EBITDA 3,452 MXN 4,583 MXN 5,714 MXN 67
EV/Revenue 1,562 MXN 2,206 MXN 2,850 MXN 54
Asset-Based
NCAV (Graham) 568.05 MXN 761.14 MXN 1,136 MXN 54
Growth DCF
Growth DCF 2,886 MXN 4,325 MXN 6,482 MXN 78
Rev-Margin DCF 1,939 MXN 2,889 MXN 3,981 MXN 73
Economic Profit
Residual Income 1,326 MXN 1,645 MXN 4,166 MXN 68
ROIC Compounder 2,496 MXN 3,167 MXN 3,955 MXN 72
Growth Earnings
Growth-Adj P/E 2,566 MXN 3,665 MXN 4,765 MXN 67

Widest divergence: DCF Models (4,289 MXN) versus Asset-Based (761.14 MXN). Highest evidence: FCF DCF (79).

Notify me when ORN reaches fair value

Put ORN on your watchlist. We get in touch as soon as price and fair value meet or the trend turns.

Set up alert →

Free, no payment details. Unsubscribe anytime in one click.

Key figures & financial health

P/E ratio 32.8
P/S ratio 4.57 P/E × margin
EPS (TTM) 232.72 MXN price ÷ EPS = P/E 32.8
Dividend yield 0.1% payout 3.1%
Net margin 13.9% FY2025
Return on equity 18.0% TTM
More key figures
Profitability
Return on assets (EBIT) 15.1% avg 5y
Operating margin 19.2% TTM
Growth
Revenue (TTM) 44.1B MXN TTM
Revenue growth (YoY) +1.0% 3y avg +4.8%
EPS growth (YoY) +0.4%
Balance sheet & cash flow
Free cash flow 7.2B MXN FY2025
Net debt 254M MXN FY2025 · ≈ 0.0 yrs of FCF

Figures from reported company fundamentals · as of Aug 14, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 71/100

Of which business quality 70 · Market factors (momentum, volatility) 48

Profitability 67
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 70
Earnings quality: real cash, not paper profit
Fin. Strength 85
Balance sheet, leverage, solvency risk
Investment 67
Disciplined investing over empire-building
Low Volatility 81
Calm price path (market factor)
Momentum 41
Price trend over the last 3–12 months (market factor)
52W Momentum 25
Distance to the 52-week high (market factor)
Net Issuance 83
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

L'Oréal S.A., through its subsidiaries, manufactures and sells cosmetic products for women and men in Europe, North America, North Asia, South Asia Pacific, the Middle East, North Africa, Sub-Saharan Africa, and Latin America. It operates through four divisions: Professional Products, Consumer Products, Luxe, and Dermatological Beauty.

Full company description

L'Oréal S.A., through its subsidiaries, manufactures and sells cosmetic products for women and men in Europe, North America, North Asia, South Asia Pacific, the Middle East, North Africa, Sub-Saharan Africa, and Latin America. It operates through four divisions: Professional Products, Consumer Products, Luxe, and Dermatological Beauty. The company offers skincare, make-up, hair colourant, haircare, perfume, and hygiene products. It provides its products under the L'Oréal Paris, Garnier, Maybelline New York, NYX Professional Makeup, Stylenanda, Essie, Dark & Lovely, Mixa, Niely, L'Oréal Professionnel, Kérastase, Redken, Matrix, Pureology, Lancôme, Yves Saint Laurent Beauté, Armani Beauty, Kiehl's, Helena Rubinstein, Aesop, Biotherm, Valentino, Prada, Shu Uemura, IT Cosmetics, Mugler, Ralph Lauren, Urban Decay, Azzaro, Maison Margiela, Viktor&Rolf, Takami, La RochePosay, CeraVe, Vichy, SkinCeuticals, Skinbetter Science, and other brand names. The company sells its products through distribution channels, such as hair salons, local stores, e-commerce, travel retail, mass market retail, department store perfumeries, pharmacies, drug stores, medi-spas, and free-standing stores. L'Oréal S.A. was founded in 1909 and is headquartered in Clichy, France.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

L'Oréal S.A reported revenue of €44.1B in FY2025 versus €32.3B in FY2021, a compound +8.1%/yr. Reported net income was €6.1B in FY2025, compounding +7.4%/yr from FY2021.

Growth Quality 90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
44.1B MXN
Latest YoY
+1.3%
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.
+4.8%
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.
+9.5%
Avg. revenue growth/yr (12Y) 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.
+5.9%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+11.4% · in MXN
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+11.3%
Dividend yield0.1%
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.18.6% (2020) → 20.2% (2025) · rising
Revenue +8.1%/yr
FY21 €32.3B
FY22 €38.3B
FY23 €41.2B
FY24 €43.5B
FY25 €44.1B
Net income +7.4%/yr
FY21 €4.6B
FY22 €5.7B
FY23 €6.2B
FY24 €6.4B
FY25 €6.1B

ORN screens 83% overvalued. Compare with Unilever PLC →

Share or link this analysis
𝕏 Post WhatsApp LinkedIn Reddit
For bloggers & editors: embed code + live data

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). "L'Oréal S.A Fair Value". https://www.fairvalue-calculator.com/stock/ORN.MX

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 17
FUTURE74 · sector 12
PAST22 · sector 26
HEALTH98 · sector 94
DIVIDEND3 · sector 39

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

Insider activity: 44/100

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 Household & Personal Products stocks, each showing price versus our Fair Value estimate (as of Aug 14, 2026).

Stock Price Fair Value vs Fair Value
Unilever PLC UNA €55.92 €40.47 −28%
Colgate-Palmolive Company CL $90.75 $55.28 −39%
500696 500696 ₹2,093 ₹641.55 −69%
Hindustan Unilever Limited HINDUNILVR ₹2,015 ₹789.46 −61%
Kenvue Inc KVUE $18.95 $10.97 −42%
Kimberly-Clark Corporation KMB $109.55 $79.71 −27%
Henkel AG HEN3 €76.42 €85.95 +12%
The Estée Lauder Companies Inc ESLA €86.54 €18.84 −78%
Church & Dwight Co CHD $101.26 $65.12 −36%
Beiersdorf Aktiengesellschaft, BEI €80.42 €68.36 −15%

Compare L'Oréal S.A with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Consumer Defensive stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Try a ready-made strategy

Pick a strategy and jump into the live analysis with that exact screen applied.

🥇 Backtested Best 🏆 Big Names ⭐ Top Rated 💎 Quality on Sale 🚀 Profitable Growth 🧊 Quality Compounders 💵 Dividend Stars 📈 Strong Momentum 📉 Fallen Angels ⚖️ Deeply Undervalued 🔍 Small-Cap Gems 🏰 Moat at a Fair Price 💼 Insider Buying 🎩 Buffett-Style Quality 📚 Peter Lynch GARP 🧮 Greenblatt Magic Formula 🛡️ Graham Defensive

Discover tools

Stock screener Filter by region, size and sector Compare tool Two stocks side by side Extrinsic Value Calculator (Options) Splits an option premium into intrinsic and extrinsic (time) value. Peter Lynch Fair Value Formula & Calculator Apply Peter Lynch's fair value formula in seconds: fair P/E ≈ earnings growth (+ dividend) - free, with formula and example.

Frequently asked questions

Is L'Oréal S.A (ORN) overvalued or undervalued?
As of Aug 14, 2026, our model estimates a fair value of 4,182 MXN versus the last price from Jul 15, 2026 of 7,641 MXN, about −45% upside (overvalued).
What is the fair value of ORN?
Our model-based fair value for L'Oréal S.A is 4,182 MXN (as of Aug 14, 2026), built from audited fundamentals. Last price (from Jul 15, 2026): 7,641 MXN.
What is the quality score of ORN?
L'Oréal S.A has a Quality Score of 71/100. 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 L'Oréal S.A (ORN)?
Our model-based price target is the fair value of 4,182 MXN (as of Aug 14, 2026) from 26 valuation models. Cautious scenario 2,792 MXN, optimistic scenario 5,855 MXN. It is a calculation from audited fundamentals, not an analyst target.
What is the L'Oréal S.A stock forecast for 2026?
Our models put fair value at 4,182 MXN, about −45% upside versus the last price from Jul 15, 2026 of 7,641 MXN (overvalued). Cautious scenario 2,792 MXN, optimistic scenario 5,855 MXN. The calculation is refreshed regularly with new filings.
What is the revenue of L'Oréal S.A (ORN)?
L'Oréal S.A reported trailing-twelve-month revenue of about 44.1B MXN (latest available figure, as of Aug 14, 2026).
What is the net profit margin of ORN?
The net profit margin of L'Oréal S.A is about 13.9%, meaning it keeps roughly 13.9% of revenue as net income. Based on the latest reported figures.
Does L'Oréal S.A pay a dividend?
L'Oréal S.A currently shows a dividend yield of about 0.09% relative to its recent price (as of Aug 14, 2026).
Free · no account needed

Watch L'Oréal S.A in the live analysis

One click puts L'Oréal S.A on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 35,000+ stock screener. You can also try 14 days of Pro there, no card.

Watch for free →

Zero risk: nothing is ever charged. Your watchlist is yours, with or without an account.