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L'Oreal (L'Oreal) Intrinsic Value: Projected FCF : $34.63 (As of Apr. 25, 2024)


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What is L'Oreal Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-04-25), L'Oreal's Intrinsic Value: Projected FCF is $34.63. The stock price of L'Oreal is $92.35. Therefore, L'Oreal's Price-to-Intrinsic-Value-Projected-FCF of today is 2.7.

The historical rank and industry rank for L'Oreal's Intrinsic Value: Projected FCF or its related term are showing as below:

LRLCY' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 1.84   Med: 2.16   Max: 3.62
Current: 2.67

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of L'Oreal was 3.62. The lowest was 1.84. And the median was 2.16.

LRLCY's Price-to-Projected-FCF is ranked worse than
80.72% of 1224 companies
in the Consumer Packaged Goods industry
Industry Median: 1.12 vs LRLCY: 2.67

L'Oreal Intrinsic Value: Projected FCF Historical Data

The historical data trend for L'Oreal's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

L'Oreal Intrinsic Value: Projected FCF Chart

L'Oreal Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Intrinsic Value: Projected FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 25.41 28.40 26.33 30.20 36.01

L'Oreal Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Intrinsic Value: Projected FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 26.33 - 30.20 - 36.01

Competitive Comparison of L'Oreal's Intrinsic Value: Projected FCF

For the Household & Personal Products subindustry, L'Oreal's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


L'Oreal's Price-to-Projected-FCF Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, L'Oreal's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where L'Oreal's Price-to-Projected-FCF falls into.



L'Oreal Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)


Add all the Free Cash Flow together and divide 6 will get L'Oreal's Free Cash Flow(6 year avg) = $5,658.24.

L'Oreal's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF=(Growth Multiple*Free Cash Flow (6 year avg)+Total Stockholders Equity (Dec23)*0.8)/Shares Outstanding (Diluted Average)
=(11.936106726364*5658.2371428571+31705.889*0.8)/2685.105
=34.60

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


L'Oreal  (OTCPK:LRLCY) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

L'Oreal's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF=Share Price/Intrinsic Value: Projected FCF
=92.35/34.599031926208
=2.67

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


L'Oreal Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of L'Oreal's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


L'Oreal (L'Oreal) Business Description

Address
41, Rue Martre, Clichy Cedex, Paris, FRA, 92117
Founded in 1909, L'Oreal has grown into the largest beauty company in the world, participating in categories including skincare (40% of 2022 sales), makeup (20%), haircare (27%), fragrance (9%), and sanitary products (4%). The firm also has a diversified geographic footprint, generating 32% of sales in its home market of Western Europe, 25% from North America, 19% in North Asia, and the rest from various emerging markets across South Asia, Latin America, and Africa. L'Oreal owns a mix of premium and mass beauty brands sold through a wide range of channels such as mass retail, drugstores, department stores, travel retail, e-commerce, hair salons, and medi-spas. Leading brands include Lancome, Yves Saint Laurent, Maybelline, Kiehl's, L'Oreal Paris, Kerastase, CeraVe, Garnier, and Armani.

L'Oreal (L'Oreal) Headlines

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