Essilorluxottica ADR ESLOY

Morningstar Rating
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Morningstar's Analysis

Valuation Dec 02, 2024
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1-Star Price
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Economic Moat
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5-Star Price
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About Quantitative Ratings

Morningstar Quantitative ratings for equities (denoted on this page by ) are generated using an algorithm that compares companies that are not under analyst coverage to peer companies that do receive analyst-driven ratings. Companies with ratings are not formally covered by a Morningstar analyst, but are statistically matched to analyst-rated companies, allowing our models to calculate a quantitative moat, fair value, and uncertainty rating. Click here for more on how to use these ratings.

Company Profile

EssilorLuxottica is a combination of the leading manufacturer of premium frames and sunglasses and the leading manufacturer of optical lenses. Both companies are significantly larger than the next biggest player in their respective fields and command over 15% of the fragmented global eyewear market. The company has a broad geographical presence, with around 36% of sales in Europe, 47% in North America, and the rest in Asia and Latin America.
Morningstar Fair Value Estimate
The Morningstar Fair Value Estimate guides investors to the long-term, intrinsic value of a stock, helping them see beyond the present market price.

Show me how fair value is derived (00:41)

Morningstar calculates the fair value estimate of a company based on a projection of how much cash the company will generate in the future. Morningstar analysts create custom industry and company assumptions to feed income statement, balance sheet, and capital investment assumptions into a proprietary discounted cash flow modeling template. Scenario analysis, in-depth competitive advantage analysis, and a variety of other analytical tools are used to augment the discounted cash flow process. The analyst discounts future cash flows using the weighted average of the costs of equity, debt, and preferred stock (and any other funding sources), using expected future proportionate long-term, market-value weights.

A superscript Q denotes a value that was determined by a quantitative model that estimates the value a Morningstar analyst would likely assign to the company. There is no one analyst in which a Quantitative Star Rating is attributed to; however, Mr. Lee Davidson, Head of Quantitative Research for Morningstar, Inc., is responsible for overseeing the methodology that supports the quantitative fair value. As an employee of Morningstar, Inc., Mr. Davidson is guided by Morningstar, Inc.'s Code of Ethics and Personal Securities Trading Policy in carrying out his responsibilities. For information regarding Conflicts of Interests, https://shareholders.morningstar.com/investor-relations/governance/Compliance--Disclosure/default.aspx

The Morningstar Fair Value Estimate is a projection/opinion and not a statement of fact. If Morningstar's base-case assumptions are true the market price will converge on Morningstar's fair value estimate over time, generally within three years. Investments in securities are subject to market and other risks. Past performance of a security may or may not be sustained in the future and is no indication of future performance.

Morningstar Equity Research Methodology

Price vs. Fair Value

 
Price/Fair Value
Total Return %
Index Total Return %
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 YTD
13.70 -8.83 23.51 -8.44 23.06 2.44 38.31 -14.04 12.86 22.21 8.30
13.51 8.47 14.70 -8.28 29.71 -3.91 29.06 -7.57 18.07 1.45 5.14
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