What is Lvmh Moet Hennessy Louis Vuitton SE WACC %?
Lvmh Moet Hennessy Louis Vuitton SEXSWX:MC 77 WACC % is 2.1% as of Jun. 25, 2026, which is 71% below its 10-year median of 7.29. GuruFocus rates XSWX:MC with a GF Score™ of 77/100 and a GF Value™ of CHF988.86 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,143 Retail - Cyclical companies, Lvmh Moet Hennessy Louis Vuitton SE ranks worse than 82.68% on this metric.
As of today (2026-06-25), Lvmh Moet Hennessy Louis Vuitton SE's weighted average cost of capital is 2.1%%. Lvmh Moet Hennessy Louis Vuitton SE's ROIC % is 9.85% (calculated using TTM income statement data).
Lvmh Moet Hennessy Louis Vuitton SE generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
For a comprehensive WACC calculation, please access the WACC Calculator.
Lvmh Moet Hennessy Louis Vuitton SE (XSWX:MC) WACC % Explanation
Because it costs money to raise capital. A firm that generates higher ROIC % 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 weighted average cost of capital is 2.1%%. Lvmh Moet Hennessy Louis Vuitton SE's ROIC % is 9.85% (calculated using TTM income statement data).
Lvmh Moet Hennessy Louis Vuitton SE generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Be Aware
1. GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together.
For companies that report quarterly, GuruFocus combines all of the most recent year's quarterly debt data from the beginning of the year to the year-end and calculates the average.
For companies that report semi-annually, GuruFocus combines all of the most recent year's semi-annual debt data from the start of the year to the year-end and calculates the average.
For companies that report annually, GuruFocus combines the beginning and ending annual debt data from the most recent year and then calculates the average.
2. The WACC formula discussed above does not include Preferred Stock. Please adjust if preferred stock is considered.
3. (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
4. GuruFocus uses the latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
Related Terms
Lvmh Moet Hennessy Louis Vuitton SE WACC % 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 WACC %, along with its competitors' market caps and WACC % 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 WACC % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Lvmh Moet Hennessy Louis Vuitton SE's WACC % distribution charts can be found below:
* The bar in red indicates where Lvmh Moet Hennessy Louis Vuitton SE's WACC % falls into.
Lvmh Moet Hennessy Louis Vuitton SE WACC % Calculation
The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital. Generally speaking, a company's assets are financed by debt and equity. WACC is the average of the costs of these sources of financing, each of which is weighted by its respective use in the given situation. By taking a weighted average, we can see how much interest the company has to pay for every dollar it finances.
WACC
=
E
/
(E + D)
*
Cost of Equity
+
D
/
(E + D)
*
Cost of Debt
*
(1 - Tax Rate)
1. Weights:
Generally speaking, a company's assets are financed by debt and equity. We need to calculate the weight of equity and the weight of debt.
The market value of equity (E) is also called "Market Cap". As of today, Lvmh Moet Hennessy Louis Vuitton SE's market capitalization (E) is CHF224186.327 Mil.
The market value of debt is typically difficult to calculate, therefore, GuruFocus uses book value of debt (D) to do the calculation. It is simplified by adding the latest one-year semi-annual average Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation together. As of Dec. 2025, Lvmh Moet Hennessy Louis Vuitton SE's latest one-year semi-annual average Book Value of Debt (D) is CHF36640.9843 Mil.
a) weight of equity = E / (E + D) = 224186.327 / (224186.327 + 36640.9843) = 0.8595
b) weight of debt = D / (E + D) = 36640.9843 / (224186.327 + 36640.9843) = 0.1405
2. Cost of Equity:
GuruFocus uses Capital Asset Pricing Model (CAPM) to calculate the required rate of return. The formula is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
a) GuruFocus uses 10-Year Treasury Constant Maturity Rate as the risk-free rate. It is updated daily. The current risk-free rate is 3.7416%. Please go to Economic Indicators page for more information. Please note that we use the 10-Year Treasury Constant Maturity Rate of the country/region where the company is headquartered. If the data for that country/region is not available, then we will use the 10-Year Treasury Constant Maturity Rate of the United States as default.
b) Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. Lvmh Moet Hennessy Louis Vuitton SE's beta is -0.2711.
c) (Expected Return of the Market - Risk-Free Rate of Return) is also called market premium. GuruFocus requires market premium to be 6%.
Cost of Equity = 3.7416% + -0.2711 * 6% = 2.115%
3. Cost of Debt:
GuruFocus uses latest TTM Interest Expense divided by the latest one-year semi-annual average debt to get the simplified cost of debt.
As of Dec. 2025, Lvmh Moet Hennessy Louis Vuitton SE's interest expense (positive number) was CHF1076.88 Mil. Its total Book Value of Debt (D) is CHF36640.9843 Mil.
Cost of Debt = 1076.88 / 36640.9843 = 2.939%.
4. Multiply by one minus TTM Tax Rate:
GuruFocus uses the most recent TTM Tax Expense divided by the most recent TTM Pre-Tax Income to calculate the tax rate. The calculated TTM tax rate is limited to between 0% and 100%. If the calculated tax rate is higher than 100%, it is set to 100%. If the calculated tax rate is less than 0%, it is set to 0%.
The latest calculated TTM Tax Rate = 5122.599 / 15622.719 = 32.79%.
* 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 WACC % of 2.1% as of Jun. 25, 2026. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Lvmh Moet Hennessy Louis Vuitton SE and its competitors. This is 71% below median its historical median of 7.29. Over the past decade, Lvmh Moet Hennessy Louis Vuitton SE's WACC % has ranged from 4.71 to 12.66. According to the industry distribution chart, Lvmh Moet Hennessy Louis Vuitton SE ranks #945 out of 1143 companies in the Retail - Cyclical industry, placing it in the top 82.7%.
Is Lvmh Moet Hennessy Louis Vuitton SE's WACC % too high?
Lvmh Moet Hennessy Louis Vuitton SE's current WACC % of 2.1% is 71% below median its 10-year median of 7.29. Over the past 10 years, this metric has ranged from a low of 4.71 to a high of 12.66. The Retail - Cyclical industry median WACC % is 7.59. Lvmh Moet Hennessy Louis Vuitton SE's value of 2.1% is 72.3% below this industry median. Based on the distribution chart, Lvmh Moet Hennessy Louis Vuitton SE ranks #945 out of 1143 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. 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 WACC % compare to TPR and SIG?
According to the Retail - Cyclical industry distribution chart, Lvmh Moet Hennessy Louis Vuitton SE ranks #945 out of 1143 companies for WACC %. This places Lvmh Moet Hennessy Louis Vuitton SE in the lower half of its industry. The industry median WACC % is 7.59. Lvmh Moet Hennessy Louis Vuitton SE's value of 2.1% is 72.3% below this benchmark. Historically, Lvmh Moet Hennessy Louis Vuitton SE's own WACC % has ranged from 4.71 to 12.66 over the past decade. While the company's 10-year median is 7.29 vs. the industry median of 7.59, Lvmh Moet Hennessy Louis Vuitton SE has consistently been below 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 WACC % for a Retail - Cyclical company?
The median WACC % among Retail - Cyclical companies is 7.59, based on 1,143 companies in the industry. Companies in the top quartile (top 25%) have a WACC % significantly above this median, while those in the bottom quartile fall well below. However, WACC % 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 WACC % of 2.1% is 72.3% below 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 WACC % mean?
A high WACC % can signal that a stock is expensive relative to its fundamentals. The weighted average cost of capital (WACC) is the average rate a company pays to finance assets. View historical data on Lvmh Moet Hennessy Louis Vuitton SE and its competitors. For the Retail - Cyclical industry, the median WACC % is 7.59 — 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 WACC % is 2.1%, which is 71% below median its own 10-year median of 7.29. 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 WACC % is 2.1%, which is 71% below median its 10-year median of 7.29 and 72.3% below the Retail - Cyclical industry median of 7.59. 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 WACC % calculated?
WACC % is calculated from a company's financial statements. For Lvmh Moet Hennessy Louis Vuitton SE (XSWX:MC), the current WACC % is 2.1% as of Jun. 25, 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 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:
WACC %: 2.1% (71% below median its 10-year median of 7.29)
GF Value™: CHF988.86 vs. price of CHF459.25 (53.6% below fair value)
Industry Position: 72.3% below the Retail - Cyclical median (#945 of 1143)
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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