Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
As of Dec. 2025, Lvmh Moet Hennessy Louis Vuitton SE has a Sloan Ratio of -2.36%, indicating the company is in the safe zone and there is no funny business with accruals.
Lvmh Moet Hennessy Louis Vuitton SE (XSWX:MC) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Dec. 2025, Lvmh Moet Hennessy Louis Vuitton SE has a Sloan Ratio of -2.36%, indicating the company is in the safe zone and there is no funny business with accruals.
Lvmh Moet Hennessy Louis Vuitton SE Sloan Ratio % Related Terms
Lvmh Moet Hennessy Louis Vuitton SE Sloan Ratio % 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.
Lvmh Moet Hennessy Louis Vuitton SE Sloan Ratio % Chart
XSWX:MC vs TPR, SIG, CPRI: Sloan Ratio % Comparison
For the Luxury Goods subindustry, Lvmh Moet Hennessy Louis Vuitton SE's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Lvmh Moet Hennessy Louis Vuitton SE's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Lvmh Moet Hennessy Louis Vuitton SE's Sloan Ratio % falls into.
Lvmh Moet Hennessy Louis Vuitton SE Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
* 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 Sloan Ratio % of -2.36% as of Dec. 2025. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Lvmh Moet Hennessy Louis Vuitton SE and its competitors.
Is Lvmh Moet Hennessy Louis Vuitton SE's Sloan Ratio % too high?
Lvmh Moet Hennessy Louis Vuitton SE's current Sloan Ratio % is -2.36%. Overall, Lvmh Moet Hennessy Louis Vuitton SE has a GF Score™ of 76/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lvmh Moet Hennessy Louis Vuitton SE's Sloan Ratio % compare to TPR and SIG?
Lvmh Moet Hennessy Louis Vuitton SE's Sloan Ratio % of -2.36% can be compared against companies in the Retail - Cyclical industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Retail - Cyclical company?
A good Sloan Ratio % depends on the Retail - Cyclical industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Lvmh Moet Hennessy Louis Vuitton SE and its competitors. Lvmh Moet Hennessy Louis Vuitton SE's current Sloan Ratio % is -2.36%. 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 CHF989.98, compared to a current price of CHF453.55 — trading 54.2% below its estimated fair value. The current Sloan Ratio % is -2.36%. Lvmh Moet Hennessy Louis Vuitton SE's overall GF Score™ is 76/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Lvmh Moet Hennessy Louis Vuitton SE (XSWX:MC), the current Sloan Ratio % is -2.36% 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 CHF453.55 is trading 54.2% below its estimated GF Value™ of CHF989.98.
GuruFocus considers Lvmh Moet Hennessy Louis Vuitton SE to be Significantly Undervalued.
Key valuation signals for XSWX:MC:
Sloan Ratio %: -2.36%
GF Value™: CHF989.98 vs. price of CHF453.55 (54.2% below fair value)
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.
76GF Score
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