L'Oréal: A classic with ambition, but valued like a growth stock

The L'Oréal stock has long been regarded as a reliable performer, delivering an average annual return of about 9.0% to investors over the past ten years. However, recently the shine has faded somewhat: the pace of growth has markedly slowed, and the security has been stagnating since mid-2021. With a P/E ratio of 33.8, L'Oréal is highly valued, even though revenue growth has recently only been in the low double-digit range. The weakness in North Asia and the declining makeup sales in the USA have particularly dampened momentum. While segments...