H & M Hennes & Mauritz AB (publ)

BUL:HMSB Stock Report

Market Cap: €21.0b

H & M Hennes & Mauritz Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 HMSB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€37.49
Fair Value
65.0% undervalued intrinsic discount
29
Number of Analysts

Below Fair Value: HMSB (€13.12) is trading below our estimate of fair value (€37.49)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HMSB. This is calculated by dividing HMSB's market cap by their current earnings.
What is HMSB's PE Ratio?
PE Ratio20.4x
EarningsSEK 11.62b
Market CapSEK 237.63b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HMSB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.7x
BURL Burlington Stores
34.7x19.1%US$16.9b
ROST Ross Stores
22.3x7.4%US$47.8b
3092 ZOZO
30.8x7.4%JP¥1.5t
ZAL Zalando
46.9x19.8%€9.6b
HMSB H & M Hennes & Mauritz
20.4x10.5%€237.6b

Price-To-Earnings vs Peers: HMSB is good value based on its Price-To-Earnings Ratio (20.4x) compared to the peer average (33.7x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HMSB 20.4xIndustry Avg. 18.6xNo. of Companies12PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HMSB is expensive based on its Price-To-Earnings Ratio (20.4x) compared to the European Specialty Retail industry average (18.1x).

Price to Earnings Ratio vs Fair Ratio

What is HMSB'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.

HMSB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate HMSB'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 HMSB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€13.12
€14.30
+9.0%
14.2%€16.80€10.61n/a29
Feb ’26€12.92
€14.09
+9.1%
14.2%€16.53€10.44n/a29
Jan ’26€12.97
€14.26
+10.0%
14.1%€17.35€10.41n/a28
Dec ’25€13.06
€14.41
+10.3%
14.3%€17.34€10.41n/a28
Nov ’25€13.69
€14.52
+6.1%
14.6%€17.26€10.36n/a28
Oct ’25€15.16
€15.07
-0.6%
13.6%€17.74€10.64n/a28
Sep ’25€14.32
€15.09
+5.4%
14.5%€18.51€10.57n/a26
Aug ’25€14.52
€15.52
+6.9%
15.2%€18.49€10.57n/a26
Jul ’25€14.78
€15.34
+3.8%
15.1%€18.43€10.53n/a26
Jun ’25€16.23
€14.97
-7.7%
16.2%€19.27€10.51n/a25
May ’25€15.00
€14.38
-4.1%
15.2%€17.98€10.27n/a26
Apr ’25€15.10
€14.30
-5.3%
16.3%€18.18€10.39n/a27
Mar ’25€12.57
€14.06
+11.8%
14.2%€17.86€10.18n/a28
Feb ’25€12.84
€14.54
+13.2%
14.4%€17.71€10.09€12.9228
Jan ’25€15.98
€15.77
-1.3%
12.6%€19.05€11.16€12.9728
Dec ’24€15.02
€15.27
+1.7%
13.1%€18.47€10.82€13.0628
Nov ’24€13.03
€14.93
+14.6%
12.9%€18.22€10.67€13.6927
Oct ’24€13.60
€14.95
+9.9%
13.1%€18.20€10.66€15.1626
Sep ’24€14.20
€14.70
+3.5%
17.0%€18.61€9.89€14.3226
Aug ’24€14.91
€15.04
+0.8%
17.5%€19.11€10.16€14.5226
Jul ’24€15.76
€13.91
-11.8%
18.8%€18.27€9.35€14.7826
Jun ’24€11.82
€12.36
+4.6%
17.5%€15.95€8.36€16.2324
May ’24€13.20
€12.38
-6.2%
19.7%€16.35€7.51€15.0025
Apr ’24€13.26
€11.95
-9.9%
21.0%€16.43€7.55€15.1025
Mar ’24€11.87
€11.00
-7.3%
21.0%€16.24€6.80€12.5725
Feb ’24€11.42
€10.32
-9.7%
21.2%€15.77€6.61€12.8425
Analyst Price Target
Consensus Narrative from 29 Analysts
€14.33
Fair Value
8.5% undervalued intrinsic discount
29
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/07 04:48
End of Day Share Price 2025/02/07 00:00
Earnings2024/11/30
Annual Earnings2024/11/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

H & M Hennes & Mauritz AB (publ) is covered by 70 analysts. 27 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullABG Sundal Collier
Pierre-Yves GauthierAlphaValue
José RitoBanco BPI, S.A.