L'Occitane International SA

00973: XHKG (HKG)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	HK$99.00	Pndzp	Xknrcqgf

L'Occitane: Fine-Tuning Near-Term Forecasts; Shares Very Undervalued

Ivan Su

Apr 24, 2023

We fine-tune our forecasts for L’Occitane but maintain its fair value estimate at HKD 36.60 per share, implying a fiscal 2024 P/E ratio of 21 times. But with its share price currently around HKD 20, we find L’Occitane’s valuation very attractive, trading at just 11 times fiscal 2024 earnings. We think investors should take advantage of this opportunity to buy shares of L’Occitane, which are trading at more than a 45% discount to our fair value estimate.

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