Imperial Brands Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: IMB (CHF23.2) is trading below our estimate of fair value (CHF71.52)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for IMB. This is calculated by dividing IMB's market cap by their current earnings.
What is IMB's PE Ratio?
PE Ratio9.5x
EarningsUK£2.08b
Market CapUK£19.71b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for IMB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.6x
LISN Chocoladefabriken Lindt & Sprüngli
33.4x6.3%CHF 22.9b
BARN Barry Callebaut
38.1x24.1%CHF 7.2b
EMMN Emmi
21.7x13.0%CHF 4.2b
NESN Nestlé
17.4x4.9%CHF 195.0b
IMB Imperial Brands
9.5x0.8%CHF 19.7b

Price-To-Earnings vs Peers: IMB is good value based on its Price-To-Earnings Ratio (9.5x) compared to the peer average (27.8x).


Price to Earnings Ratio vs Industry

How does IMB's PE Ratio compare vs other companies in the Global Tobacco Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
IMB 9.5xIndustry Avg. 11.7xNo. of Companies9PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IMB is good value based on its Price-To-Earnings Ratio (9.5x) compared to the Global Tobacco industry average (11.9x).


Price to Earnings Ratio vs Fair Ratio

What is IMB'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.

IMB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio9.5x
Fair PE Ratio18.8x

Price-To-Earnings vs Fair Ratio: IMB is good value based on its Price-To-Earnings Ratio (9.5x) compared to the estimated Fair Price-To-Earnings Ratio (18.8x).


Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.


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