EssilorLuxottica S.A. (EL.PA) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+13.5%

€211.98

vs €186.80 price

Levered DCF

€208.58

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

3.02

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	53.55×	45.31×	35.52×	34.74×	56.74×	637.75×	54.76×	26.61×
P/B	3.19×	2.65×	2.13×	2×	2.34×	1.72×	1.69×	0.88×
P/S	4.35×	4.03×	3.2×	3.05×	4.15×	3.85×	3.39×	2.66×
EV / EBITDA	20.6×	17.99×	14.57×	13.97×	19.89×	24.07×	16.63×	12.46×
Gross margin	60.6%	63.4%	63.2%	63.7%	62.0%	58.9%	62.2%	62.2%
Operating margin	12.1%	13.0%	12.5%	13.3%	13.0%	5.0%	12.0%	14.0%
Net margin	8.1%	8.9%	9.0%	8.8%	7.3%	0.6%	6.2%	10.0%
Current ratio	0.99×	0.95×	1×	0.97×	1.03×	2.22×	1.91×	0.94×
Debt / equity	0.37×	0.33×	0.3×	0.33×	0.37×	0.37×	0.27×	0.17×
Interest coverage	10.99×	20.9×	16.04×	20.88×	18.26×	5.1×	12.9×	13.38×
Dividend yield	0.4%	1.1%	0.6%	0.6%	0.2%	0.9%	1.5%	1.7%
Payout ratio	23.6%	49.3%	21.3%	21.1%	9.5%	591.8%	82.4%	44.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	6.0%	5.8%	6.0%	5.7%	4.1%	0.3%	3.1%	3.3%
Return on invested capital	4.8%	4.6%	4.7%	4.6%	3.6%	0.7%	3.4%	3.2%
Return on assets	3.6%	3.7%	3.8%	3.6%	2.4%	0.2%	2.0%	2.2%
Free cash flow yield	3.0%	3.1%	4.1%	4.3%	4.3%	4.1%	4.1%	5.7%
Earnings yield	1.9%	2.2%	2.8%	2.9%	1.8%	0.2%	1.8%	3.8%
Enterprise value	€134.7B	€117.9B	€90.4B	€85.2B	€93.6B	€62.8B	€63.5B	€32.7B
Net debt / EBITDA	1.66×	1.67×	1.47×	1.71×	2.43×	2.76×	1.2×	1.48×
Cash conversion cycle (days)	74	64	57	66	59	71	77	105