After a 29% rise this year, L’Oreal stock (OTCMKTS: LRLCY) looks fully valued. L’Oreal stock has risen from $72 in early January to $92 now. This marks a significant outperformance with the 7% return for the broader S&P500 index. Looking at a slightly longer term, LRLCY stock is up 55% from levels in late 2019. This can be attributed to 1. the company’s P/S ratio, which rose 20% to 6.1x trailing revenues from 5.1x in 2019, 2. a 22% rise in L’Oreal revenue to $92.4 billion, and 3. its average shares outstanding falling 5% to 2.7 billion. Our interactive dashboard, Why L’Oreal Stock Moved, has more details.
L’Oreal is the largest manufacturer of cosmetics in the world. It sells makeup, fragrances, skincare, and hair care products through over 30 global brands. The company’s sales rose 12% to $40.9 billion in 2022, partly due to favorable foreign exchange. The company has also benefited from price increases in the recent past. Now that the lockdowns in China have been lifted, L’Oreal will likely see strong sales growth in the near
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