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Hermès International Société en commandite par actions (RMS) Fair Value & Analysis

Consumer Cyclical · FR · Market cap €176B

HI Hermès International Société en commandite par actions RMS · PA
Price€1,636
Fair Value€950.24
Upside-41.9%
Quality79/100
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Healthy Growth
Highly profitable · 28.3% net margin
Low debt · generates free cash flow
1.06% dividend yield
Mixed vs. peers (6/15)
Wide moat 97/100
Evidence: High Range €680.08 – €1,168 Share as image

Fair value as of: Jul 19, 2026

From 26 valuation models · updated 21 days ago

Fair value updated Jul 19, 2026, revised from €949.67 to €950.24 (+0.1%) since Jul 18, 2026. Share price +4.1% over the past month.

A strong business, but screening 42% overvalued on our models.

What matters now

  • A high-quality business (quality 79/100), 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 (€1,168). The favourable scenario is already priced in.
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Price vs Fair Value (5 years)

€2,781 €933.60 Fair Value €950.24 Jun 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range €933.60 – €2,781 · fair‑value band €680.08 – €1,168 · the €1,636 price screens above the €950.24 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

Hermès International Société en commandite par actions (RMS) currently trades at €1,636, while our model-based Fair Value estimate is €950.24, implying the stock looks roughly 41.9% overvalued today. The Quality Score stands at 79/100 (high quality), in the Consumer Cyclical 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, Hermès International Société en commandite par actions generated revenue of €16.0B at a net margin of 28.3%. Revenue grew 3.9% year over year. It earns a return on equity of 25.2%. The balance sheet holds a net cash position of €9.9B. Fundamentals as of Jul 19, 2026

Our scenario range runs from €680.08 (bear case) to €1,168 (bull case); at €1,636, 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 33% below its 52-week high and 8% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -41% fair-value upside, at -42%, RMS 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 €658.38 €1,069 €1,768 80
Residual Income €270.22 €335.53 €1,149 76
Rev-Margin DCF €377.54 €506.95 €675.96 74
All 26 models by family
DCF Models
FCF DCF €662.93 €1,112 €1,897 38
Owner Earnings €663.06 €1,112 €1,898 31
5Y Revenue Exit €377.54 €503.15 €661.77 39
5Y EBITDA Exit €696.01 €1,162 €1,749 41
5Y P/E Exit €739.18 €1,252 €1,841 38
10Y Revenue Exit €464.49 €616.35 €828.64 36
10Y EBITDA Exit €680.41 €1,100 €1,742 37
10Y P/E Exit €709.08 €1,166 €1,819 35
Earnings-Based
Graham-Dodd €293.71 €1,381 €1,899 54
Lynch FV €365.84 €522.63 €679.42 50
PEG = 1.0 €365.84 €522.63 €679.42 46
EPV €508.06 €573.32 €630.42 59
Dividend Discount
Gordon GGM €241.34 €501.79 €796.04 70
DDM Multi-Stage €241.34 €423.12 €526.64 61
Multiples
P/E Multiple €712.68 €950.24 €1,188 63
P/S Multiple €137.50 €183.33 €229.17 58
P/B Multiple €539.68 €719.57 €899.47 55
EV/EBIT €963.21 €1,245 €1,528 53
EV/EBITDA €760.55 €975.23 €1,190 54
EV/Revenue €244.86 €299.86 €354.86 43
Asset-Based
NCAV (Graham) €89.95 €120.53 €179.89 50
Growth DCF
Growth DCF €658.38 €1,069 €1,768 80
Rev-Margin DCF €377.54 €506.95 €675.96 74
Economic Profit
Residual Income €270.22 €335.53 €1,149 76
ROIC Compounder €538.05 €644.86 €764.86 72
Growth Earnings
Growth-Adj P/E €593.86 €848.37 €1,103 68

Widest divergence: DCF Models (€1,112) versus Asset-Based (€120.53). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) €16.0B
Revenue growth (YoY) +3.9%
Net margin 28.3%
Return on equity 25.2%
Free cash flow €4.4B FY2025
P/E ratio 39.1
More key figures
Operating margin 41.4%
EPS (TTM) €43.03
Dividend yield 1.1%
EPS growth (YoY) +1.8%
Net cash €9.9B FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 79/100

Of which business quality 77 · Market factors (momentum, volatility) 31

Profitability 82
Margins and returns on capital today
Quality Growth 48
Are margins and returns improving?
Cashflow 81
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 48
Disciplined investing over empire-building
Low Volatility 61
Calm price path (market factor)
Momentum 24
Price trend over the last 3–12 months (market factor)
52W Momentum 11
Distance to the 52-week high (market factor)
Net Issuance 81
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

Hermès International Société en commandite par actions engages in the production, wholesale, and retail of various goods.

Full company description

Hermès International Société en commandite par actions engages in the production, wholesale, and retail of various goods. 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 Société en commandite par actions is a subsidiary of H51 SAS.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hermès International Société en commandite par actions 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.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
€16.0B
Latest YoY
+5.5%
Avg. growth/yr (3Y)
+11.3%
Avg. growth/yr (5Y)
+20.2%
Avg. growth/yr (24Y)
+11.3%
Revenue +15.5%/yr
FY21 €9.0B
FY22 €11.6B
FY23 €13.4B
FY24 €15.2B
FY25 €16.0B
Net income +16.6%/yr
FY21 €2.4B
FY22 €3.4B
FY23 €4.3B
FY24 €4.6B
FY25 €4.5B

RMS screens 42% overvalued. Compare with Compagnie Financière Richemont SA →

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Cite: Fair Value Calculator (2026). "Hermès International Société en commandite par actions Fair Value". https://www.fairvalue-calculator.com/stock/RMS

Earlier news

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

Peer Group

Luxury Goods · 132 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 79 · Top 25%
Fair Value upside −42% · Below median
Return on equity (TTM) 25% · Top 25%
Return on assets 18% · Top 25%
Net margin (TTM) 28% · Top 25%
Operating margin (TTM) 41% · Top 25%
Revenue growth 4% · Below median
Dividend yield (TTM) 1.1% · Below median
Debt / equity 0.00× · Lower than median

Valuation Multiples vs Luxury Goods median · lower = cheaper

P/E (TTM) 39.1× · Pricier than 75% of peers
P/B 10.80× · Pricier than 75% of peers
P/S (TTM) 12.72× · Pricier than 75% of peers
P/FCF 46.1× · Pricier than 75% of peers
EV/EBITDA 27.2× · Pricier than 75% of peers
PEG 4.09× · Pricier than 75% of peers

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.

VALUE 0 · sector 13
FUTURE 20 · sector 50
PAST 100 · sector 38
HEALTH 100 · sector 99
DIVIDEND 21 · sector 38

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

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.

Similar stocks

10 more Luxury Goods stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
Compagnie Financière Richemont SA CFR CHF 197.40 CHF 117.30 -41%
Christian Dior SE DIO €455.40 €502.30 +10%
Kering SA KER €248.50 €60.61 -76%
Tapestry, Inc TPR $140.73 $19.95 -86%
Chow Tai Fook Jewellery Group 1929 HK$11.82 HK$12.28 +4%
The Swatch Group UHRN CHF 40.95 CHF 21.48 -48%
Prada S.p.A 1913 HK$43.26 HK$64.05 +48%
Pandora A/S PNDORA kr 779.40 kr 1,424 +83%
Brunello Cucinelli S.p.A BC €80.32 €42.69 -47%
Kalyan Jewellers India Limited KALYANKJIL ₹546.60 ₹238.57 -56%

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Frequently asked questions

Is Hermès International Société en commandite par actions (RMS) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of €950.24 versus a price of €1,636, about −42% (overvalued).
What is the fair value of RMS?
Our model-based fair value for Hermès International Société en commandite par actions is €950.24 (as of Jul 19, 2026), built from audited fundamentals. The current price is €1,636.
What is the quality score of RMS?
Hermès International Société en commandite par actions 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 revenue of Hermès International Société en commandite par actions (RMS)?
Hermès International Société en commandite par actions reported trailing-twelve-month revenue of about €16.0B (latest available figure, as of Jul 19, 2026).
What is the net profit margin of RMS?
The net profit margin of Hermès International Société en commandite par actions is about 28.3%, meaning it keeps roughly 28.3% of revenue as net income. Based on the latest reported figures.
Does Hermès International Société en commandite par actions pay a dividend?
Hermès International Société en commandite par actions currently shows a dividend yield of about 1.10% relative to its recent price (as of Jul 19, 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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