As of 2025-05-19, the Fair Value of L'Oreal SA (OR.PA) is 144.33 EUR. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 373.85 EUR, the upside of L'Oreal SA is -61.4%.

Is OR.PA a good investment?

With the market price of 373.85 EUR and our fair value calculation, L'Oreal SA (OR.PA) is not a good investment. Investing in OR.PA stocks now will result in a potential loss of 61.4%.

373.85 EUR

Stock Price

144.33 EUR

Fair Price

FAIR VALUE CALCULATION

OR.PA Fair Value

Peter Lynch's formula is:

OR.PA Fair Value

= Earnings Growth Rate x TTM EPS

OR.PA Fair Value

= 12 x 11.99

OR.PA Fair Value

= 144.33

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

	12-2020	12-2021	12-2022	12-2023	12-2024	5Y Avg
Net income	3,563.4	4,597	5,706.6	6,184.1	6,408.7	5,292
YoY growth	-5%	29%	24.1%	8.4%	3.6%	12%

OR.PA Fair Value - Peers Benchmarking

	Market Cap (mil)	EPS	Fair Value	Upside
a
L'Oreal SA	199,756	12	144.33	-61.4%
Unilever PLC	115,007	231	970.73	-79%
Beiersdorf AG	29,723	3.7	23.28	-80.6%
Interparfums SA	2,833	1.7	42.65	14.6%
Gr Sarantis SA	932	0.7	5.31	-61.9%
Ontex Group NV	628	0.6	2.92	-61.7%
EIS Eczacibasi Ilac Sinai ve Finansal Yatirimlar Sanayi ve Ticaret AS	5,489	0.5	2.74	-65.7%
Midsona AB	1,271	0.3	1.31	-85.1%
Jacques Bogart SA	81	0.4	1.86	-63.9%
Global Cosmed SA	293	0.1	3.04	-9.4%
MADARA Cosmetics AS	36	1.2	25.56	170.8%

OR.PA Fair Value - Key Data

Market Cap (mil)	199,756
P/E	31.2x
Forward P/E	29.6x

EPS	11.99
Avg earnings growth rate	12%
TTM earnings	6,409

OR.PA 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.