H & M Hennes & Mauritz AB (publ)

BRSE:HMB Stock Report

Market Cap: CHF 22.3b

H & M Hennes & Mauritz Valuation

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

Below Fair Value: HMB (CHF18.2) is trading below our estimate of fair value (CHF20.02)

Significantly Below Fair Value: HMB is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

HMB 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/Revenue1.4x
Enterprise Value/EBITDA12.7x
PEG Ratio1.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HMB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average35.2x
AVOL Avolta
40.1x24.8%CHF 5.1b
BURL Burlington Stores
45.1x18.8%US$17.4b
ROST Ross Stores
25x7.4%US$51.8b
3092 ZOZO
30.7x6.3%JP¥1.4t
HMB H & M Hennes & Mauritz
24x13.4%CHF 267.6b

Price-To-Earnings vs Peers: HMB is good value based on its Price-To-Earnings Ratio (24x) compared to the peer average (35.2x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.9%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.9%
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No more companies

Price-To-Earnings vs Industry: HMB is expensive based on its Price-To-Earnings Ratio (24x) compared to the European Specialty Retail industry average (16.8x).

Price to Earnings Ratio vs Fair Ratio

What is HMB'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.

HMB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24x
Fair PE Ratio28.5x

Price-To-Earnings vs Fair Ratio: HMB is good value based on its Price-To-Earnings Ratio (24x) compared to the estimated Fair Price-To-Earnings Ratio (28.5x).

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 HMB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 18.20
CHF 14.53
-20.1%
14.4%CHF 17.55CHF 10.03n/a26
Aug ’25CHF 18.20
CHF 15.12
-16.9%
15.2%CHF 18.02CHF 10.30n/a26
Jul ’25CHF 18.20
CHF 14.88
-18.2%
15.1%CHF 17.87CHF 10.21n/a26
Jun ’25CHF 18.20
CHF 14.65
-19.5%
16.2%CHF 18.86CHF 10.29n/a25
May ’25CHF 18.20
CHF 14.07
-22.7%
15.2%CHF 17.60CHF 10.06n/a26
Apr ’25CHF 18.19
CHF 13.92
-23.5%
16.3%CHF 17.69CHF 10.11n/a27
Mar ’25CHF 18.19
CHF 13.39
-26.4%
14.2%CHF 17.01CHF 9.69n/a28
Feb ’25CHF 18.19
CHF 13.56
-25.5%
14.4%CHF 16.51CHF 9.41n/a28
Jan ’25CHF 18.19
CHF 14.86
-18.3%
12.6%CHF 17.95CHF 10.51n/a28
Dec ’24CHF 18.19
CHF 14.64
-19.5%
13.1%CHF 17.71CHF 10.37n/a28
Nov ’24CHF 18.19
CHF 14.32
-21.3%
12.9%CHF 17.48CHF 10.24n/a27
Oct ’24CHF 18.19
CHF 14.45
-20.6%
13.1%CHF 17.59CHF 10.30n/a26
Sep ’24CHF 18.19
CHF 14.05
-22.8%
17.0%CHF 17.78CHF 9.45n/a26
Aug ’24CHF 18.19
CHF 14.56
-20.0%
17.5%CHF 18.51CHF 9.83CHF 18.2026
Jul ’24CHF 18.19
CHF 13.58
-25.3%
18.8%CHF 17.84CHF 9.13CHF 18.2026
Jun ’24CHF 18.19
CHF 12.03
-33.9%
17.5%CHF 15.52CHF 8.14CHF 18.2024
May ’24CHF 18.19
CHF 12.15
-33.2%
19.7%CHF 16.05CHF 7.38CHF 18.2025
Apr ’24CHF 18.19
CHF 11.86
-34.8%
21.0%CHF 16.30CHF 7.49CHF 18.1925
Mar ’24CHF 18.19
CHF 10.92
-40.0%
21.0%CHF 16.12CHF 6.75CHF 18.1925
Feb ’24CHF 18.19
CHF 10.30
-43.4%
21.2%CHF 15.75CHF 6.60CHF 18.1925
Jan ’24CHF 18.19
CHF 10.01
-45.0%
25.5%CHF 16.97CHF 6.25CHF 18.1925
Dec ’23CHF 18.19
CHF 10.08
-44.6%
21.2%CHF 16.27CHF 7.72CHF 18.1925
Nov ’23CHF 18.19
CHF 9.99
-45.1%
20.8%CHF 16.20CHF 7.69CHF 18.1925
Oct ’23CHF 18.19
CHF 10.12
-44.4%
19.3%CHF 15.91CHF 7.56CHF 18.1925
Sep ’23CHF 18.19
CHF 12.68
-30.3%
21.9%CHF 19.27CHF 9.55CHF 18.1925
Aug ’23CHF 18.19
CHF 13.61
-25.2%
19.8%CHF 19.93CHF 9.97CHF 18.1925

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

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