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Hermes International SCA (RMS) Fair Value & Analysis

Consumer Cyclical · FR · Market cap €176B · ISIN FR0000052292

What is Hermes International SCA really worth?

HI Hermes International SCA RMS · PA
Price€1,457
Fair Value€950.24
Upside−34.8%
Quality79/100

A strong business, but trading 53% above our fair value of €950.24.

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Strengths

Healthy Growth (revenue 5y +20.2 %/yr)
Highly profitable · 28.3% net margin
Low debt · generates free cash flow
Wide moat 97/100

Risks

!Mixed vs. peers (6/15)
!Weak on future: 20 out of 100
!Weak on dividend: 25 out of 100

For context

·1.24% dividend yield
Evidence: High Range €651.87 – €1,168

Fair value as of: Aug 29, 2026

From 26 valuation models · updated 6 days ago

Share price −5.8% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • A high-quality business (quality 79/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (€1,168). The favourable scenario is already priced in.

Price vs Fair Value (5 years)

€2,781 €933.60 Fair Value €950.24 Jul 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 29, 2026.

How to read this chart

60‑month range €933.60 – €2,781 · fair‑value band €651.87 – €1,168 · the €1,457 price screens above the €950.24 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 29, 2026.

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Analysis

Hermes International SCA (RMS) currently trades at €1,457, while our model-based Fair Value estimate is €950.24, implying the stock looks roughly 53.3% overvalued today. The Quality Score stands at 79/100 (high quality), in the Consumer Cyclical sector. Bull case: the DCF Models group reads highest at a median of €1,112 per share, and 0 of the 26 models we run sit above the €1,457 price. Bear case: the Asset-Based group reads lowest at €120.53, and 26 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Hermes International SCA generated revenue of €16.0B at a net margin of 28.3%. Revenue grew 3.9% year over year. It earns a return on equity of 25.2%. The balance sheet holds a net cash position of €9.9B. Fundamentals as of Aug 29, 2026

Our scenario range runs from €651.87 (bear case) to €1,168 (bull case); at €1,457, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 41% below its 52-week high, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −6% fair-value upside, at −35%, RMS screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly €16.98 per share, which is 1.8 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF €662.93 €1,112 €1,897 78
Growth DCF €658.38 €1,069 €1,768 77
Owner Earnings €663.06 €1,112 €1,898 74
All 26 models by family
DCF Models
FCF DCF €662.93 €1,112 €1,897 78
Owner Earnings €663.06 €1,112 €1,898 74
5Y Revenue Exit €377.54 €503.15 €661.77 74
5Y EBITDA Exit €696.01 €1,162 €1,749 74
5Y P/E Exit €739.18 €1,252 €1,841 70
10Y Revenue Exit €464.49 €616.35 €828.64 67
10Y EBITDA Exit €680.41 €1,100 €1,742 67
10Y P/E Exit €709.08 €1,166 €1,819 63
Earnings-Based
Graham-Dodd €293.71 €1,381 €1,899 64
Lynch FV €365.84 €522.63 €679.42 61
PEG = 1.0 €365.84 €522.63 €679.42 57
EPV €508.06 €573.32 €630.42 74
Dividend Discount
Gordon GGM €241.34 €501.79 €796.04 66
DDM Multi-Stage €241.34 €423.12 €526.64 66
Multiples
P/E Multiple €712.68 €950.24 €1,188 63
P/S Multiple €137.50 €183.33 €229.17 58
P/B Multiple €539.68 €719.57 €899.47 55
EV/EBIT €963.21 €1,245 €1,528 66
EV/EBITDA €760.55 €975.23 €1,190 67
EV/Revenue €244.86 €299.86 €354.86 54
Asset-Based
NCAV (Graham) €89.95 €120.53 €179.89 54
Growth DCF
Growth DCF €658.38 €1,069 €1,768 77
Rev-Margin DCF €377.54 €506.95 €675.96 73
Economic Profit
Residual Income €270.22 €335.53 €1,149 64
ROIC Compounder €538.05 €644.86 €764.86 72
Growth Earnings
Growth-Adj P/E €593.86 €848.37 €1,103 67

Widest divergence: DCF Models (€1,112) versus Asset-Based (€120.53). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/E ratio 33.9
P/S ratio 9.57 P/E × margin
EPS (TTM) €43.03 price ÷ EPS = P/E 33.9
Dividend yield 1.2% payout 41.8%
Net margin 28.3% FY2025
Return on equity 25.2% TTM
More key figures
Profitability
Return on assets (EBIT) 27.0% avg 5y
Operating margin 41.4% TTM
Growth
Revenue (TTM) €16.0B TTM
Revenue growth (YoY) +3.9% 3y avg +11.3%
EPS growth (YoY) +1.8%
Balance sheet & cash flow
Free cash flow €4.4B FY2025
Net cash €9.9B FY2025

Figures from reported company fundamentals · as of Aug 29, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 79/100

Of which business quality 77 · Market factors (momentum, volatility) 26

Profitability 82
Margins and returns on capital today
Quality Growth 48
Are margins and returns improving?
Cashflow 81
Earnings quality: real cash, not paper profit
Fin. Strength 100
Balance sheet, leverage, solvency risk
Investment 48
Disciplined investing over empire-building
Low Volatility 61
Calm price path (market factor)
Momentum 18
Price trend over the last 3–12 months (market factor)
52W Momentum 0
Distance to the 52-week high (market factor)
Net Issuance 81
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Hermès International Société en commandite par actions engages in the production, wholesale, and retail of various goods.

Full company description

Hermès International Société en commandite par actions engages in the production, wholesale, and retail of various goods. The company offers leather goods and saddlery, such as bags for men and women, travel articles, small leather goods and accessories, saddles, bridles, and various equestrian products and clothing; ready-to-wear garments for men and women; and accessories, including jewelry, belts, hats, gloves, internet of things products, and shoes. It also provides silk and textiles for men and women; art of living and tableware products; beauty and perfume products; and watches. In addition, the company is involved in weaving, engraving, printing, dyeing, finishing, and producing textiles; purchasing, tanning, dyeing, finishing, and selling tanneries and precious leathers; and creating and producing of metal parts. It sells its products through a network of stores in France, rest of Europe, Japan, the Asia Pacific, the Americas, and the Middle East, as well as sells watches, perfumes, and tableware through a network of specialized stores. The company was founded in 1837 and is headquartered in Paris, France. Hermès International Société en commandite par actions is a subsidiary of H51 SAS.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hermes International SCA reported revenue of €16.0B in FY2025 versus €9.0B in FY2021, a compound +15.5%/yr. Reported net income was €4.5B in FY2025, compounding +16.6%/yr from FY2021.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
€16.0B
Latest YoY
+5.5%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.3%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+20.2%
Avg. revenue growth/yr (24Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.3%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+25.5% (24.3 + 1.2)
Revenue +15.5%/yr
FY21 €9.0B
FY22 €11.6B
FY23 €13.4B
FY24 €15.2B
FY25 €16.0B
Net income +16.6%/yr
FY21 €2.4B
FY22 €3.4B
FY23 €4.3B
FY24 €4.6B
FY25 €4.5B
Character of growth · EPS growth decomposed (2014-2025) +18.4 % p.a.
Revenue per share +13.6 %

of which total revenue +13.6 % · buybacks/dilution +0.0 %

EBIT margin +2.8 %
Tax rate +0.7 %
Residual (interest, one-offs) +0.8 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

RMS screens 53% overvalued. Compare with Compagnie Financière Richemont SA →

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Cite: Fair Value Calculator (2026). "Hermes International SCA Fair Value". https://www.fairvalue-calculator.com/stock/RMS

Peer Group

Luxury Goods · 135 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 79 · Top 25%
Fair Value upside −35% · Below median
Return on equity (TTM) 25% · Top 25%
Return on assets 18% · Top 25%
Net margin (TTM) 28% · Top 25%
Operating margin (TTM) 41% · Top 25%
Revenue growth 4% · Below median
Dividend yield (TTM) 1.2% · Below median
Debt / equity 0.00× · Lower than median

Valuation Multiples vs Luxury Goods median · lower = cheaper

P/E (TTM) 33.9× · Pricier than 75% of peers
P/B 10.85× · Pricier than 75% of peers
P/S (TTM) 12.78× · Pricier than 75% of peers
P/FCF 46.3× · Pricier than 75% of peers
EV/EBITDA 27.3× · Pricier than 75% of peers
PEG 4.09× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 10
FUTURE20 · sector 48
PAST100 · sector 40
HEALTH100 · sector 99
DIVIDEND25 · sector 41

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Luxury Goods stocks, each showing price versus our Fair Value estimate (as of Aug 29, 2026).

Stock Price Fair Value vs Fair Value
Compagnie Financière Richemont SA CFR CHF 192.15 CHF 119.49 −38%
Christian Dior SE DIO €423.60 €1,095 +159%
Titan Company TITAN ₹5,106 ₹972.23 −81%
Tapestry, Inc TPR $153.74 $19.95 −87%
Chow Tai Fook Jewellery Group 1929 HK$12.31 HK$11.51 −6%
The Swatch Group UHRN CHF 36.35 CHF 8.46 −77%
Prada S.p.A 1913 HK$40.86 HK$64.71 +58%
Pandora A/S PNDORA kr 783.00 kr 1,424 +82%
Laopu Gold Co 6181 HK$385.00 HK$654.83 +70%
Brunello Cucinelli S.p.A BC €89.08 €34.90 −61%

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Frequently asked questions

Is Hermes International SCA (RMS) overvalued or undervalued?
As of Aug 29, 2026, our model estimates a fair value of €950.24 versus a price of €1,457, about −35% upside (overvalued).
What is the fair value of RMS?
Our model-based fair value for Hermes International SCA is €950.24 (as of Aug 29, 2026), built from audited fundamentals. The current price: €1,457.
What is the quality score of RMS?
Hermes International SCA has a Quality Score of 79/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Hermes International SCA (RMS)?
Hermes International SCA reported trailing-twelve-month revenue of about €16.0B (latest available figure, as of Aug 29, 2026).
What is the net profit margin of RMS?
The net profit margin of Hermes International SCA is about 28.3%, meaning it keeps roughly 28.3% of revenue as net income. Based on the latest reported figures.
Does Hermes International SCA pay a dividend?
Hermes International SCA currently shows a dividend yield of about 1.24% relative to its recent price (as of Aug 29, 2026).
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