LONDON, Jan 31 Reuters Europe39;s glittering luxury companies, the region39;s top stockmarket performers in 2023, may see yet more gains driven by a rebound in Chinese spending, but for some the sector is starting to look expensive.

The likes of French luxury giant and Louis Vuittonowner LVMH , and Swiss jewelry company Richemont, have benefited from the resilience of their wealthy customers against the costofliving crisis.

Since the start of 2023, China39;s decision to allow more normal activity and dismantle its strict COVID19 restrictions has provided another boost for the sector.

An index of European luxury goods retailers has rallied around 18 so far this year, outperforming the wider panEuropean STOXX 600, which is up 6.2 in the same time frame.

But the fact that luxury goods companies are not as cheap as they once were is a concernpoint of attention, said Kasper Elmgreen, Head of Equities at Amundi, Europe39;s largest asset manager.

Theyre much more fairly valued today, there is less that is perhaps undiscovered. The risk is that when something moves to being priced to perfection there is always a higher risk of disappointment.

The pricetoearnings ratio of the MSCI Europe luxury index is around 26, while that of the broader STOXX is closer to 13, according to Refinitiv data.

European luxury has historically traded at a big premium relative to the broader market, but this has widened even further in recent years. At 23 times 12month forward earnings, its…