ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Lvmh Moet Hennessy Louis Vuitton SE's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 9.52%.
As of today (2026-06-25), Lvmh Moet Hennessy Louis Vuitton SE's WACC % is 11.68%. Lvmh Moet Hennessy Louis Vuitton SE's ROIC % is 9.85% (calculated using TTM income statement data).
Lvmh Moet Hennessy Louis Vuitton SE earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Lvmh Moet Hennessy Louis Vuitton SE (XSWX:MC) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Lvmh Moet Hennessy Louis Vuitton SE's WACC % is 11.68%. Lvmh Moet Hennessy Louis Vuitton SE's ROIC % is 9.85% (calculated using TTM income statement data).
Lvmh Moet Hennessy Louis Vuitton SE earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Lvmh Moet Hennessy Louis Vuitton SE ROIC % Related Terms
Lvmh Moet Hennessy Louis Vuitton SE ROIC % Historical Data
* 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.
For the Luxury Goods subindustry, Lvmh Moet Hennessy Louis Vuitton SE's ROIC %, along with its competitors' market caps and ROIC % 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.
Lvmh Moet Hennessy Louis Vuitton SE ROIC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Lvmh Moet Hennessy Louis Vuitton SE's ROIC % distribution charts can be found below:
* The bar in red indicates where Lvmh Moet Hennessy Louis Vuitton SE's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 2025) data.
The tax rate is limited to between 0% and 100%.
* 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.
Lvmh Moet Hennessy Louis Vuitton SE (XSWX:MC) has a ROIC % of 9.52% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Lvmh Moet Hennessy Louis Vuitton SE and its competitors.
Is Lvmh Moet Hennessy Louis Vuitton SE's ROIC % too high?
Lvmh Moet Hennessy Louis Vuitton SE's current ROIC % is 9.52%. The Retail - Cyclical industry median ROIC % is 4.37. Lvmh Moet Hennessy Louis Vuitton SE's value of 9.52% is 117.8% above this industry median. Overall, Lvmh Moet Hennessy Louis Vuitton SE has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lvmh Moet Hennessy Louis Vuitton SE's ROIC % compare to TPR and SIG?
Lvmh Moet Hennessy Louis Vuitton SE's ROIC % of 9.52% can be compared against companies in the Retail - Cyclical industry. The industry median ROIC % is 4.37. Lvmh Moet Hennessy Louis Vuitton SE's value of 9.52% is 117.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Retail - Cyclical company?
The median ROIC % among Retail - Cyclical companies is 4.37, based on 1,113 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lvmh Moet Hennessy Louis Vuitton SE's current ROIC % of 9.52% is 117.8% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Lvmh Moet Hennessy Louis Vuitton SE and its competitors. For the Retail - Cyclical industry, the median ROIC % is 4.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lvmh Moet Hennessy Louis Vuitton SE's current ROIC % is 9.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lvmh Moet Hennessy Louis Vuitton SE stock overvalued right now?
Based on GuruFocus' analysis, Lvmh Moet Hennessy Louis Vuitton SE (XSWX:MC) is currently considered Significantly Undervalued. The stock's GF Value™ is CHF988.86, compared to a current price of CHF459.25 — trading 53.6% below its estimated fair value. The current ROIC % is 9.52% and 117.8% above the Retail - Cyclical industry median of 4.37. Lvmh Moet Hennessy Louis Vuitton SE's overall GF Score™ is 77/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Lvmh Moet Hennessy Louis Vuitton SE (XSWX:MC), the current ROIC % is 9.52% as of Dec. 2025. 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 Lvmh Moet Hennessy Louis Vuitton SE (XSWX:MC) Overvalued in 2026?
Based on GuruFocus' analysis, Lvmh Moet Hennessy Louis Vuitton SE stock appears to be undervalued.
The current stock price of CHF459.25 is trading 53.6% below its estimated GF Value™ of CHF988.86.
GuruFocus considers Lvmh Moet Hennessy Louis Vuitton SE to be Significantly Undervalued.
Key valuation signals for XSWX:MC:
ROIC %: 9.52%
GF Value™: CHF988.86 vs. price of CHF459.25 (53.6% below fair value)
Industry Position: 117.8% above the Retail - Cyclical median
No single metric tells the full story. See the XSWX:MC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lvmh Moet Hennessy Louis Vuitton SE Business Description
LVMH is a global producer and distributor of luxury goods. It operates six segments: fashion and leather goods, its largest and most profitable; watches and jewelry; wines and spirits; perfumes and cosmetics; selective retailing (including Sephora and airport duty-free retailer DFS); and other. Higher-profile brands include Louis Vuitton, Bulgari, Fendi, Givenchy, Tag Heuer, Hennessy, Moet & Chandon, Glenmorangie, Sephora, and Benefit. LVMH operates over 5,000 stores around the globe.
77GF Score
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