Fortune Brands Innovations, Inc.

DB:2FB Stock Report

Market Cap: €9.1b

Fortune Brands Innovations Valuation

Is 2FB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • 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 2FB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 2FB (€72.5) is trading below our estimate of fair value (€90.26)

Significantly Below Fair Value: 2FB 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 2FB?

Key metric: As 2FB is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 2FB. This is calculated by dividing 2FB's market cap by their current earnings.
What is 2FB's PE Ratio?
PE Ratio22.4x
EarningsUS$448.10m
Market CapUS$9.50b

Price to Earnings Ratio vs Peers

How does 2FB's PE Ratio compare to its peers?

The above table shows the PE ratio for 2FB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.3x
VIB3 Villeroy & Boch
14.9x43.5%€419.1m
ST5 STEICO
10.1x-7.6%€279.7m
WUG Westag
24.1xn/a€117.0m
BNR Brenntag
16.3x15.6%€8.9b
2FB Fortune Brands Innovations
22.4x11.5%€9.5b

Price-To-Earnings vs Peers: 2FB is expensive based on its Price-To-Earnings Ratio (22.4x) compared to the peer average (16.3x).

Price to Earnings Ratio vs Industry

How does 2FB's PE Ratio compare vs other companies in the European Building Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
2FB 22.4xIndustry Avg. 19.7xNo. of Companies15PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 2FB is expensive based on its Price-To-Earnings Ratio (22.4x) compared to the European Building industry average (19.9x).

Price to Earnings Ratio vs Fair Ratio

What is 2FB'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.

2FB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.4x
Fair PE Ratio18x

Price-To-Earnings vs Fair Ratio: 2FB is expensive based on its Price-To-Earnings Ratio (22.4x) compared to the estimated Fair Price-To-Earnings Ratio (18x).

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 2FB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€72.50
€86.78
+19.7%
9.5%€104.67€72.98n/a16
Nov ’25€76.50
€82.96
+8.4%
10.5%€102.82€73.18n/a16
Oct ’25€79.00
€78.40
-0.8%
8.4%€91.63€66.89n/a16
Sep ’25€70.50
€78.40
+11.2%
8.4%€91.63€66.89n/a16
Aug ’25€74.50
€79.03
+6.1%
8.5%€92.50€67.53n/a16
Jul ’25€60.00
€79.30
+32.2%
7.7%€90.96€66.83n/a16
Jun ’25€63.50
€79.30
+24.9%
7.7%€90.96€66.83n/a16
May ’25€70.00
€79.94
+14.2%
7.9%€91.66€67.34n/a15
Apr ’25€77.50
€79.20
+2.2%
7.8%€89.73€65.92n/a16
Mar ’25€75.00
€80.23
+7.0%
7.8%€90.96€66.83n/a16
Feb ’25€71.50
€78.45
+9.7%
9.4%€90.70€63.86n/a17
Jan ’25€69.50
€67.84
-2.4%
13.2%€86.10€51.30n/a17
Dec ’24€62.50
€64.44
+3.1%
9.9%€77.24€52.75n/a17
Nov ’24€52.50
€64.44
+22.7%
9.9%€77.24€52.75€76.5017
Oct ’24€59.00
€76.25
+29.2%
8.7%€85.17€61.77€79.0017
Sep ’24€63.50
€72.72
+14.5%
13.0%€83.13€43.85€70.5018
Aug ’24€64.50
€72.27
+12.0%
13.4%€82.76€43.65€74.5017
Jul ’24€66.00
€65.00
-1.5%
11.7%€80.05€44.16€60.0017
Jun ’24€56.50
€65.57
+16.0%
11.6%€78.12€44.64€63.5016
May ’24€57.00
€63.64
+11.6%
11.5%€76.23€43.56€70.0016
Apr ’24€52.50
€64.45
+22.8%
10.5%€74.54€45.29€77.5016
Mar ’24€58.00
€64.75
+11.6%
10.9%€74.47€45.25€75.0016
Feb ’24€59.00
€63.55
+7.7%
15.0%€82.05€44.25€71.5016
Jan ’24€53.50
€63.72
+19.1%
16.5%€83.89€45.24€69.5015
Dec ’23€62.00
€75.35
+21.5%
15.5%€95.15€57.70€62.5016
Nov ’23€61.50
€75.35
+22.5%
15.5%€95.15€57.70€52.5016

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

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