Zalando SE

WBAG:ZAL Stock Report

Market Cap: €7.4b

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 (€28.6) is trading below our estimate of fair value (€67.66)

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?

Key metric: As ZAL is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ZAL. This is calculated by dividing ZAL's market cap by their current earnings.
What is ZAL's PE Ratio?
PE Ratio36x
Earnings€204.10m
Market Cap€7.36b

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 Average17x
GAP Gap
11.1x3.5%US$9.1b
ANF Abercrombie & Fitch
14.1x0.3%US$7.5b
3092 ZOZO
31.3x7.4%JP¥1.4t
600398 Hla Group
11.6x14.9%CN¥28.1b
ZAL Zalando
36x21.9%€7.4b

Price-To-Earnings vs Peers: ZAL is expensive based on its Price-To-Earnings Ratio (36x) compared to the peer average (17.1x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ZAL 36.0xIndustry Avg. 16.0xNo. of Companies11PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ZAL is expensive based on its Price-To-Earnings Ratio (36x) compared to the European Specialty Retail industry average (16.2x).

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 Ratio36x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate ZAL's Price-To-Earnings Fair Ratio for valuation analysis.

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€28.60
€35.28
+23.4%
18.9%€50.00€19.00n/a28
Nov ’25€27.90
€35.24
+26.3%
19.9%€50.00€19.00n/a27
Oct ’25€28.83
€33.82
+17.3%
19.2%€47.00€19.00n/a27
Sep ’25€23.37
€33.14
+41.8%
19.1%€47.00€19.00n/a27
Aug ’25€24.40
€33.16
+35.9%
19.8%€47.00€18.00n/a27
Jul ’25€22.64
€32.83
+45.0%
22.1%€47.00€18.00n/a26
Jun ’25€24.39
€32.98
+35.2%
21.7%€47.00€18.00n/a26
May ’25€24.70
€32.48
+31.5%
22.6%€47.00€18.00n/a26
Apr ’25€26.20
€31.44
+20.0%
27.4%€53.00€18.00n/a27
Mar ’25€19.78
€31.77
+60.7%
27.1%€53.00€18.00n/a28
Feb ’25€18.23
€32.16
+76.5%
27.1%€53.00€18.00n/a28
Jan ’25€21.00
€34.73
+65.4%
24.5%€55.00€18.00n/a28
Dec ’24€22.34
€34.88
+56.1%
25.6%€55.00€18.00n/a29
Nov ’24€22.22
€36.80
+65.6%
23.8%€55.00€21.00€27.9029
Oct ’24€20.89
€38.96
+86.5%
22.7%€55.00€21.00€28.8329
Sep ’24€28.50
€39.56
+38.8%
21.4%€55.00€21.00€23.3730
Aug ’24€30.42
€40.86
+34.3%
28.7%€82.00€21.00€24.4029
Jul ’24€26.34
€42.05
+59.6%
26.3%€82.00€21.00€22.6430
Jun ’24€26.51
€48.05
+81.2%
35.2%€120.00€30.00€24.3930
May ’24€37.14
€49.10
+32.2%
33.9%€120.00€30.00€24.7029
Apr ’24€38.56
€49.07
+27.3%
35.2%€120.00€24.00€26.2028
Mar ’24€37.12
€47.90
+29.1%
37.6%€120.00€24.00€19.7828
Feb ’24€42.50
€45.65
+7.4%
41.0%€120.00€24.00€18.2328
Jan ’24€33.31
€38.55
+15.7%
55.8%€120.00€17.00€21.0026
Dec ’23€30.96
€38.20
+23.4%
56.7%€120.00€17.00€22.3426
Nov ’23€24.29
€39.46
+62.4%
54.4%€120.00€17.00€22.2227

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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