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LVMH - The luxury ETF with pricing power

When you talk about quality companies with structural growth, it's hard to avoid LVMH. For me, the Group is basically something like an actively managed ETF in the global luxury segment - only with real entrepreneurial leadership and a remarkable dividend history.

What makes LVMH special is the breadth of its portfolio. We're not talking about a single fashion brand here, but a diversified empire of fashion, leather goods, watches, jewelry, perfume, cosmetics and spirits.

The portfolio includes, among others:

- Fendi

These brands have one thing in common: extreme pricing power. Anyone who believes that luxury is cyclical like normal retail is overlooking the crucial point - real luxury goods are status assets. And status rarely loses value, even if the economy fluctuates.

Structural growth instead of short-term hype

Prosperity in Asia continues to grow. The global upper-middle class is expanding. At the same time, luxury is becoming increasingly digital and global. LVMH is investing heavily in its own stores, brand staging and vertical integration - from production to the point of sale.

The result:

High margins
Strong cash flows
Solid balance sheet
Reliable dividend policy

And this in a business that has built up brand value over decades, which cannot simply be copied.

Dividend with substance

LVMH is not a high-yield stock, but the combination of growth and continuously rising dividends makes the share attractive in the long term. This is not a speculative story investment, but a global market leader with real substance.

Why I see it as a "luxury ETF"

Instead of valuing individual fashion brands or betting on trends, LVMH bundles numerous icons under one roof. Diversification within a premium segment - steered by a management that has proven for decades how to scale brands without diluting them.

For investors who:

are looking for quality instead of a turnaround
value global brand strength
believe in rising prosperity
like dividend growth

... LVMH is at least worth a closer look.

Not cheap, but quality has never been discounted.

$MC (+0,46 %)
$LVMH
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13 Comentarios

RW@SeidoPacero

Which etf always falls?

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Alpalaka@Alpalaka

@SeidoPacero Ask the miller Dirk

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Get_Rich_or_Die_Tryin@Get_Rich_or_Die_Tryin

@SeidoPacero "always" is rather sweeping and neither accurate nor multi-valued.😉

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Raketentoni@Raketentoni

I don't quite share your opinion, I would like to show you an evaluation that even the dear @Tenbagger2024 and @Multibagger like 😬 don't forget, the formulas are written for my Invest, but numbers don't lie.

Let's put LVMH on the dissecting table. The full year figures for 2025 are fresh out, and the global luxury market is currently facing significant headwinds - especially in Asia.
Here is the honest, numbers-driven analysis without the usual glamor marketing.
Current share price data (as at March 3, 2026)
Share price: EUR 520.50 (Euronext Paris)
Market capitalization: approx. EUR 259 billion
The 5 key figures
P/E ratio (price-earnings ratio): 23.8 (Based on EUR 10.88 bn net profit for 2025. Historically rather in the lower midfield for LVMH, but no bargain in absolute terms).
KCV (price-cash flow ratio): 16.3 (operating cash flow was around EUR 15.9 bn).
KUV (price-sales ratio): 3.2 (sales 2025: EUR 80.8 bn).
P/B ratio (price-to-book value ratio): 3.7 (equity is a massive EUR 68.9 bn).
Dividend yield: 2.5% (the dividend will remain stable at EUR 13.00 for 2025).
The automated quality grid
1. core quality formula (growth & margin)
Sales growth: -1% (organic) or -5% (reported in euros). The core division "Fashion & Leather Goods" even lost 5% organically.
Operating margin: 22.0% (despite the crisis, LVMH is defending its margins extremely strongly).
Score: -1 + 22.0 = 21.0
Verdict: Solid (15-25). The outstanding margin saves the score here, while growth is currently a real drag.
2. cash flow quality
Free cash flow (FCF): EUR 11.3 bn (LVMH has slightly reduced investments / CapEx to EUR 4.6 bn, which actually increased FCF by 8%).
FCF yield: EUR 11.3 bn / EUR 259 bn = 4.36 %
Verdict: Acceptable, but scraping the 5% mark from below. The share is still a tad too expensive for an entry as a real value play in relation to the free cash produced.
3. dividend filter (income core)
Yield: 2.5% - misses the tough 3.5% hurdle.
Coverage: The FCF covers the EUR 6.5 bn distributed (EUR 13 per share) extremely comfortably. The balance sheet is a rock in the surf.
Verdict: Failed as a pure income stock. The exception does not apply here, as current growth is negative.
The hard truth
We inevitably end up with the exclusion rule: no buy if sales growth is stagnating or negative.
The facts are on the table: Champagne and cognac sales are collapsing (sales -9%), the most important cash cow (fashion & leather goods) is also weakening. LVMH is undoubtedly one of the best companies in the world, but you are currently buying a shrinking business at a P/E ratio of just under 24. The story of invincible luxury consumption simply doesn't hold water with the current figures.
The share is currently a clear case for the watchlist, but not a buy according to our criteria today. We would need either a significantly lower share price (to push the FCF yield above 5%) or fundamental proof that sales growth is picking up again.

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Raketentoni@Raketentoni

@alphawolf I just wrote something about it here, I read your question 😬

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Musikerie@Musikerie

In my opinion, these luxury brands have already benefited from a trend that is damaging to themselves. But the fact that every self-respecting Talahon sells his coke out of a Louis Vuitton bag will hardly harm the brand empire. I say that purely out of my ass feeling that Bernard Arnault has overdone it ... that still lives a little from what the brands once stood for, but I see just as much future there as for the entertaining Mercedes luxury strategy.

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Leon@Investingyoung

@Musikerie LVMH is no longer luxury but show-off shit

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ShindyDeanMartin@ShindyDeanMartin

Team $RMS

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Brian@Aktienhauptmeister

@ShindyDeanMartin is on my watch🧐 is slowly getting interesting

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GHF@GHF

Great contribution and certainly one of the top companies in Europe, unfortunately you do not address weaknesses or risks at all.

I don't want to formulate it as detailed and well-founded as @Raketentoni. But aspects that made me sell $MC and why I think a new purchase is currently not advisable:

1. weak demand in the key regions of China and the USA. Only limited growth is to be expected here in the foreseeable future.

2. trade conflicts and tariff barriers in these key markets. The USA and China are vulnerable in this respect today and in the future.

3. the strengthening euro is weighing on the balance sheet

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Leon@Investingyoung

You forgot to mark a share, that probably means it is so luxurious that none of us know it except a few

$BC 😎🤠

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KoenigsRasse@KoenigsRasse

@Investingyoung right thanks for the tip 🤝

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PositivePossum@PositivePossum

First of all, thank you for your contribution 👍

I think calling LVMH an ETF suggests a lack of security.

After all, the family has a 48% stake with over 65% of the voting shares.

I have no idea what the upcoming generational change will bring.

It is effectively a constitutional monarchy.

A far cry from an ETF.

P.S. I am invested myself but with the same risk allocation as other individual stocks, e.g. from the tech sector.

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