Hermès International reported half-year 2026 earnings with sales of €8,163 million and net income of €2,238 million, prompting a fresh look at its valuation. The stock closed at €1,550.50, slightly above a widely followed narrative fair value of €1,505, suggesting it may be about 3% overvalued. The fair value estimate incorporates a discounted cash flow and PEG average, a 10% discount for potential disruption from a vanished 5.8% stake, a further 5% reduction for other risks, and an €11 billion cash add-back from over €12 billion in net cash. The shares have fallen 26.31% year to date, with a one-year total shareholder return decline of 27.19%, though the five-year return remains positive at 21.44%. Key risks include the unresolved €14 billion missing share saga and potential pressure from French surtax charges.
Hermes International SCAEarnings report and fair value analysis suggest stock is 3% overvalued, with year-to-date decline of 26.31%.