As of 2025-07-05, the Fair Value of Lovisa Holdings Ltd (LOV.AX) is 19.39 AUD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 30.66 AUD, the upside of Lovisa Holdings Ltd is -36.8%.

Is LOV.AX a good investment?

With the market price of 30.66 AUD and our fair value calculation, Lovisa Holdings Ltd (LOV.AX) is not a good investment. Investing in LOV.AX stocks now will result in a potential loss of 36.8%.

30.66 AUD

Stock Price

19.39 AUD

Fair Price

FAIR VALUE CALCULATION

LOV.AX Fair Value

Peter Lynch's formula is:

LOV.AX Fair Value

= Earnings Growth Rate x TTM EPS

LOV.AX Fair Value

= 25 x 0.78

LOV.AX Fair Value

= 19.39

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

	Historical Earnings

	06-2020	06-2021	07-2022	07-2023	06-2024	5Y Avg
Net income	11.22	24.83	58.39	68.16	82.41	49
YoY growth	-69.7%	121.3%	135.2%	16.7%	20.9%	44.9%

LOV.AX Fair Value - Peers Benchmarking

	Market Cap (mil)	EPS	Fair Value	Upside
a
Lovisa Holdings Ltd	3,395	0.8	19.39	-36.8%
Sanrio Co Ltd	1,640,243	163.4	816.94	-87.3%
Super Retail Group Ltd	3,315	1	25.07	70.8%
Nick Scali Ltd	1,556	0.8	16.4	-9.8%
Shanghai Aiyingshi Co Ltd	2,726	0.8	3.85	-80.4%
Adairs Ltd	472	0.1	1.07	-49.2%
Oriental Watch Holdings Ltd	1,662	0.5	11.89	248.8%
Baby Bunting Group Ltd	242	0	0.11	-94%
Atlan Holdings Bhd	632	0.2	5	100.8%
Michael Hill International Ltd	160	0	0.06	-84.5%
myNEWS Holdings Bhd	405	0	0.08	-84.5%

LOV.AX Fair Value - Key Data

Market Cap (mil)	3,395
P/E	39.5x
Forward P/E	35.8x

EPS	0.78
Avg earnings growth rate	44.9%
TTM earnings	86

LOV.AX Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.