LRLCF (L'Oreal) EV-to-EBIT: 22.56 (As of Jul. 15, 2026) — 12% Below Median

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

LRLCF L'Oreal SA LRLCF
94 GF Score
Price $423.98
GF Value $506.28
Valuation Modestly Undervalued
! 2 Warning Signs
View Full Analysis

What is L'Oreal EV-to-EBIT?

L'Oreal LRLCF -0.57% 94 EV-to-EBIT is 22.56 as of Jul. 15, 2026, which is 12% below its 10-year median of 25.52. GuruFocus rates LRLCF with a GF Score™ of 94/100 and a GF Value™ of $506.28 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,560 Consumer Packaged Goods companies, L'Oreal ranks worse than 77.44% on this metric.

EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, L'Oreal's Enterprise Value is $232,512 Mil. L'Oreal's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was $10,309 Mil. Therefore, L'Oreal's EV-to-EBIT for today is 22.56.

The historical rank and industry rank for L'Oreal's EV-to-EBIT or its related term are showing as below:

LRLCF' s EV-to-EBIT Range Over the Past 10 Years
Min: 19.44   Med: 25.52   Max: 48.29
Current: 22.95

During the past 13 years, the highest EV-to-EBIT of L'Oreal was 48.29. The lowest was 19.44. And the median was 25.52.

LRLCF's EV-to-EBIT is ranked worse than
77.44% of 1560 companies
in the Consumer Packaged Goods industry
Industry Median: 12.115 vs LRLCF: 22.95

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %. L'Oreal's Enterprise Value for the quarter that ended in Dec. 2025 was $239,262 Mil. L'Oreal's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was $10,309 Mil. L'Oreal's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2025 was 4.31%.


L'Oreal  (OTCPK:LRLCF) EV-to-EBIT Explanation

This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt) %.

L'Oreal's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2025 is calculated as:

Earnings Yield (Joel Greenblatt) % (Q: Dec. 2025 ) =EBIT / Enterprise Value (Q: Dec. 2025 )
=10308.623/239261.854968
=4.31 %

L'Oreal's Enterprise Value for the quarter that ended in Dec. 2025 was $239,262 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. L'Oreal's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was $10,309 Mil.

* 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 EV-to-EBIT Related Terms


L'Oreal EV-to-EBIT Historical Data

* Premium members only.

The historical data trend for L'Oreal's EV-to-EBIT 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.

L'Oreal EV-to-EBIT Chart

L'Oreal Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EV-to-EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 37.22 23.62 29.81 21.22 22.28

L'Oreal Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
EV-to-EBIT 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 29.81 0.00 21.22 0.00 22.28

LRLCF vs PG, CL, KVUE: EV-to-EBIT Comparison

For the Household & Personal Products subindustry, L'Oreal's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Consumer Packaged Goods Industry

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

* The bar in red indicates where L'Oreal's EV-to-EBIT falls into.


LRLCF
94GF Score
L'Oreal SA LRLCF
EV-to-EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

L'Oreal EV-to-EBIT Calculation

L'Oreal's EV-to-EBIT for today is calculated as:

EV-to-EBIT=Enterprise Value (Today)/EBIT (TTM)
=232512.071/10308.623
=22.56

L'Oreal's current Enterprise Value is $232,512 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. L'Oreal's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was $10,309 Mil.

* 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.

Frequently Asked Questions Learn more about EV-to-EBIT →
What does a EV-to-EBIT of 22.56 mean?
L'Oreal (LRLCF) has a EV-to-EBIT of 22.56 as of Jul. 15, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on L'Oreal and its competitors. This is 12% below median its historical median of 25.52. Over the past decade, L'Oreal's EV-to-EBIT has ranged from 19.44 to 48.29. According to the industry distribution chart, L'Oreal ranks #1208 out of 1560 companies in the Consumer Packaged Goods industry, placing it in the top 77.4%.
Is L'Oreal's EV-to-EBIT too high?
L'Oreal's current EV-to-EBIT of 22.56 is 12% below median its 10-year median of 25.52. Over the past 10 years, this metric has ranged from a low of 19.44 to a high of 48.29. The Consumer Packaged Goods industry median EV-to-EBIT is 12.12. L'Oreal's value of 22.56 is 86.2% above this industry median. Based on the distribution chart, L'Oreal ranks #1208 out of 1560 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, L'Oreal has a GF Score™ of 94/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does L'Oreal's EV-to-EBIT compare to PG and CL?
According to the Consumer Packaged Goods industry distribution chart, L'Oreal ranks #1208 out of 1560 companies for EV-to-EBIT. This places L'Oreal in the lower half of its industry. The industry median EV-to-EBIT is 12.12. L'Oreal's value of 22.56 is 86.2% above this benchmark. Historically, L'Oreal's own EV-to-EBIT has ranged from 19.44 to 48.29 over the past decade. While the company's 10-year median is 25.52 vs. the industry median of 12.12, L'Oreal has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Consumer Packaged Goods company?
The median EV-to-EBIT among Consumer Packaged Goods companies is 12.12, based on 1,560 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. L'Oreal's current EV-to-EBIT of 22.56 is 86.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on L'Oreal and its competitors. For the Consumer Packaged Goods industry, the median EV-to-EBIT is 12.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. L'Oreal's current EV-to-EBIT is 22.56, which is 12% below median its own 10-year median of 25.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is L'Oreal stock overvalued right now?
Based on GuruFocus' analysis, L'Oreal (LRLCF) is currently considered Modestly Undervalued. The stock's GF Value™ is $506.28, compared to a current price of $423.98 — trading 16.3% below its estimated fair value. The current EV-to-EBIT is 22.56, which is 12% below median its 10-year median of 25.52 and 86.2% above the Consumer Packaged Goods industry median of 12.12. L'Oreal's overall GF Score™ is 94/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For L'Oreal (LRLCF), the current EV-to-EBIT is 22.56 as of Jul. 15, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is L'Oreal (LRLCF) Overvalued in 2026?

Based on GuruFocus' analysis, L'Oreal stock appears to be undervalued. The current stock price of $423.98 is trading 16.3% below its estimated GF Value™ of $506.28. GuruFocus considers L'Oreal to be Modestly Undervalued.

Key valuation signals for LRLCF:

  • EV-to-EBIT: 22.56 (12% below median its 10-year median of 25.52)
  • GF Value™: $506.28 vs. price of $423.98 (16.3% below fair value)
  • GF Score™: 94/100 with 2 warning signs
  • Industry Position: 86.2% above the Consumer Packaged Goods median (#1208 of 1560)

No single metric tells the full story. See the LRLCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


L'Oreal Business Description

Address 41, Rue Martre, Clichy Cedex, Paris, FRA, 92117
L'Oréal is the largest beauty product maker in the world, with consumer products (37% of sales) and luxury beauty (35%) the major segments, followed by derma skin care (16%) and professional products (12%). The firm also has a diversified geographic footprint, generating 34% of sales in Europe, 27% from North America, 23% in North Asia, and the rest from various emerging markets across South Asia, Latin America, and Africa. L'Oréal 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 Lancôme, Yves Saint Laurent, Maybelline, Kiehl's, L'Oréal Paris, Kerastase, CeraVe, Garnier, and Armani.
94GF Score

Get the complete analysis for LRLCF

EV-to-EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$423.98
Price
$506.28
GF Value