Independent equity research
Is Hermès (RMS) a Buy, Hold or Sell?
Hermès — our independent, AI-built valuation and rating, in brief.
SELL (reduce)
12-mo fair value
€1,150.00
To fair value
−18%
By · report dated 2026-08-13 · fair value derived independently of the market price.
The thesis, in brief
Hermès still earns a 23.8% ROIC on a 9.4% cost of capital, but at 35.9x 2026E earnings and a 2.81% normalised FCF yield against a 3.98% OAT, the price discounts roughly 10.5% annual FCF growth for fifteen years - against the 6% constant-currency rate the group is actually running at
How we value it
We value Hermès using 15-yr FCF DCF, 9.39% proprietary WACC, 2.5% terminal growth; cross-check 24x our FY27E EPS. The 12-month fair value is set from that intrinsic estimate first, then compared to the market to read the upside or downside — never anchored to the current price.
What the full report covers
- Business & moat + industry cycle
- Earnings quality & normalized EPS
- Returns on capital (ROIC vs WACC)
- Balance-sheet safety
- Two independent valuations (DCF + multiples)
- Bear / base / bull fair values
- Earnings-call analysis
- Insider activity & positioning
- Technicals (RSI / ADX)
- A falsifiable thesis
Read the full Hermès report
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