L'Oréal S.A. (OR.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

-49.2%

€221.60

vs €436.35 price

Levered DCF

€216.39

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

5.92

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	31.93×	28.51×	39.02×	31.32×	50.6×	48.79×	39.4×	28.91×
P/B	5.6×	5.51×	8.3×	6.58×	9.86×	5.99×	5.02×	4.18×
P/S	4.44×	4.2×	5.86×	4.67×	7.2×	6.21×	4.95×	4.18×
EV / EBITDA	18.5×	18.01×	24.71×	19.86×	30.01×	26.25×	20.5×	17.4×
Gross margin	74.3%	74.2%	73.9%	72.4%	73.9%	73.1%	73.0%	72.8%
Operating margin	20.2%	20.0%	19.8%	19.5%	19.1%	18.6%	18.6%	18.3%
Net margin	13.9%	14.7%	15.0%	14.9%	14.2%	12.7%	12.6%	14.5%
Current ratio	1.44×	1.13×	1.1×	1.02×	0.73×	1.31×	1.28×	1.23×
Debt / equity	0.34×	0.26×	0.3×	0.21×	0.27×	0.09×	0.1×	0.05×
Interest coverage	24.31×	21.18×	35.92×	105.92×	161.93×	65.77×	73.57×	141.44×
Dividend yield	2.0%	2.0%	1.4%	1.5%	1.0%	1.3%	1.5%	1.8%
Payout ratio	63.9%	56.4%	55.4%	47.1%	51.2%	61.5%	59.2%	52.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	17.5%	19.3%	21.3%	21.0%	19.5%	12.3%	12.7%	14.5%
Return on invested capital	13.1%	15.2%	15.9%	16.2%	14.9%	11.5%	11.3%	12.5%
Return on assets	9.9%	11.4%	11.9%	12.2%	10.7%	8.2%	8.6%	10.1%
Free cash flow yield	3.7%	3.6%	2.5%	2.8%	2.4%	3.2%	3.4%	3.4%
Earnings yield	3.1%	3.5%	2.6%	3.2%	2.0%	2.1%	2.5%	3.5%
Enterprise value	€197.7B	€187.2B	€245.7B	€181.8B	€236.1B	€169.9B	€145.4B	€109.8B
Net debt / EBITDA	0.19×	0.43×	0.44×	0.33×	0.46×	-0.6×	-0.34×	-0.44×
Cash conversion cycle (days)	-23	-13	-18	-33	-80	-55	-29	-32