How Has LVMH Performed Financially from 2018 to 2022: A Fundamental Financial Analysis of LVMH

Abstract

This thesis will analyze and evaluate the value of the LVMH Group from a quantitative and qualitative perspective as part of its examination and evaluation as the topic of my dissertation. We are going to examine the qualitative analysis of COVID-19, the CEO of LVMH Bernard Arnault who is the richest man in the world, and LVMH's purchase of Tiffany in the qualitative analysis. As part of the quantitative analysis, the CAPM model and the Sharpe ratio were used to examine LVMH from a quantitative perspective. In addition, we also chose DCF, WACC, and relative valuation as measures of how well LVMH is performing. In the end, it was determined through a series of analyses and assessments made at various stages in the process that LVMH's stock price has been overvalued by the market. As a result of this, the luxury industry is generating enormous revenues, and a majority of the businesses are overvalued.