Zalando Valuation

Is ZAL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ZAL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ZAL (€28.71) is trading below our estimate of fair value (€70.13)

Significantly Below Fair Value: ZAL is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for ZAL?

Other financial metrics that can be useful for relative valuation.

ZAL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.6x
Enterprise Value/EBITDA14.9x
PEG Ratio2x

Price to Earnings Ratio vs Peers

How does ZAL's PE Ratio compare to its peers?

The above table shows the PE ratio for ZAL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.7x
FIE Fielmann Group
27.7x16.8%€4.0b
HBM HORNBACH Baumarkt
25.8xn/a€1.9b
FSNT Platform Group
2.8x-33.9%€155.8m
CEC Ceconomy
10.5x22.2%€1.4b
ZAL Zalando
48.6x24.4%€7.4b

Price-To-Earnings vs Peers: ZAL is expensive based on its Price-To-Earnings Ratio (48.6x) compared to the peer average (16.7x).


Price to Earnings Ratio vs Industry

How does ZAL's PE Ratio compare vs other companies in the European Specialty Retail Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a35.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a35.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: ZAL is expensive based on its Price-To-Earnings Ratio (48.6x) compared to the European Specialty Retail industry average (16.3x).


Price to Earnings Ratio vs Fair Ratio

What is ZAL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ZAL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio48.6x
Fair PE Ratio19.1x

Price-To-Earnings vs Fair Ratio: ZAL is expensive based on its Price-To-Earnings Ratio (48.6x) compared to the estimated Fair Price-To-Earnings Ratio (19.1x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ZAL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€28.71
€35.24
+22.7%
19.9%€50.00€19.00n/a27
Oct ’25€29.00
€33.82
+16.6%
19.2%€47.00€19.00n/a27
Sep ’25€23.44
€33.14
+41.4%
19.1%€47.00€19.00n/a27
Aug ’25€24.44
€33.16
+35.7%
19.8%€47.00€18.00n/a27
Jul ’25€22.85
€32.83
+43.7%
22.1%€47.00€18.00n/a26
Jun ’25€24.25
€32.98
+36.0%
21.7%€47.00€18.00n/a26
May ’25€24.66
€32.48
+31.7%
22.6%€47.00€18.00n/a26
Apr ’25€26.49
€31.44
+18.7%
27.4%€53.00€18.00n/a27
Mar ’25€19.80
€31.77
+60.5%
27.1%€53.00€18.00n/a28
Feb ’25€18.34
€32.16
+75.4%
27.1%€53.00€18.00n/a28
Jan ’25€21.45
€34.73
+61.9%
24.5%€55.00€18.00n/a28
Dec ’24€22.33
€34.88
+56.2%
25.6%€55.00€18.00n/a29
Nov ’24€22.26
€36.80
+65.3%
23.8%€55.00€21.00n/a29
Oct ’24€21.13
€38.96
+84.4%
22.7%€55.00€21.00€29.0029
Sep ’24€28.42
€39.56
+39.2%
21.4%€55.00€21.00€23.4430
Aug ’24€30.31
€40.86
+34.8%
28.7%€82.00€21.00€24.4429
Jul ’24€26.36
€42.05
+59.5%
26.3%€82.00€21.00€22.8530
Jun ’24€26.48
€48.05
+81.4%
35.2%€120.00€30.00€24.2530
May ’24€37.17
€49.10
+32.1%
33.9%€120.00€30.00€24.6629
Apr ’24€38.54
€49.07
+27.3%
35.2%€120.00€24.00€26.4928
Mar ’24€37.13
€47.90
+29.0%
37.6%€120.00€24.00€19.8028
Feb ’24€42.60
€45.65
+7.2%
41.0%€120.00€24.00€18.3428
Jan ’24€33.11
€38.55
+16.4%
55.8%€120.00€17.00€21.4526
Dec ’23€31.00
€38.20
+23.2%
56.7%€120.00€17.00€22.3326
Nov ’23€24.30
€39.46
+62.4%
54.4%€120.00€17.00€22.2627
Oct ’23€20.23
€39.93
+97.4%
53.1%€120.00€17.08€21.1328

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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