Burberry Group plc

DB:BB2 Stock Report

Market Cap: €4.2b

Burberry Group Valuation

Is BB2 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 BB2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€17.91
Fair Value
32.6% undervalued intrinsic discount
19
Number of Analysts

Below Fair Value: BB2 (€12.07) is trading below our estimate of fair value (€17.91)

Significantly Below Fair Value: BB2 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BB2?

Key metric: As BB2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for BB2. This is calculated by dividing BB2's market cap by their current earnings.
What is BB2's PE Ratio?
PE Ratio93.4x
EarningsUK£38.00m
Market CapUK£3.55b

Price to Earnings Ratio vs Peers

How does BB2's PE Ratio compare to its peers?

The above table shows the PE ratio for BB2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average40.8x
BOSS Hugo Boss
13.4x13.3%€2.9b
ADS adidas
113.3x32.6%€43.2b
BIJ Bijou Brigitte modische Accessoires
13.5xn/a€279.8m
PUM PUMA
23.2x16.9%€6.0b
BB2 Burberry Group
93.4x42.9%€3.5b

Price-To-Earnings vs Peers: BB2 is expensive based on its Price-To-Earnings Ratio (93.4x) compared to the peer average (40.8x).

Price to Earnings Ratio vs Industry

How does BB2's PE Ratio compare vs other companies in the European Luxury Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
BB2 93.4xIndustry Avg. 16.2xNo. of Companies6PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BB2 is expensive based on its Price-To-Earnings Ratio (93.4x) compared to the European Luxury industry average (16.2x).

Price to Earnings Ratio vs Fair Ratio

What is BB2'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.

BB2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio93.4x
Fair PE Ratio36.4x

Price-To-Earnings vs Fair Ratio: BB2 is expensive based on its Price-To-Earnings Ratio (93.4x) compared to the estimated Fair Price-To-Earnings Ratio (36.4x).

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 BB2 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€12.07
€10.65
-11.7%
21.6%€15.75€5.80n/a19
Jan ’26€11.73
€10.35
-11.7%
25.3%€16.04€5.73n/a19
Dec ’25€10.83
€9.70
-10.3%
25.9%€16.02€5.72n/a19
Nov ’25€9.68
€8.52
-12.0%
28.2%€15.76€4.86n/a19
Oct ’25€7.98
€8.46
+5.9%
26.7%€15.96€4.92n/a19
Sep ’25€8.10
€9.65
+19.2%
19.0%€15.80€5.67n/a19
Aug ’25€9.06
€10.03
+10.7%
20.9%€15.81€5.82n/a19
Jul ’25€10.40
€12.56
+20.7%
16.0%€18.49€8.48n/a19
Jun ’25€12.41
€13.86
+11.7%
17.0%€19.74€8.81n/a19
May ’25€13.61
€15.70
+15.4%
17.1%€24.58€11.59n/a19
Apr ’25€14.50
€16.06
+10.8%
16.7%€24.57€11.70n/a19
Mar ’25€15.26
€16.63
+9.0%
14.6%€24.55€11.69n/a20
Feb ’25€15.40
€17.51
+13.7%
19.4%€28.05€12.84n/a21
Jan ’25€16.72
€20.85
+24.7%
17.5%€28.83€17.30€11.7321
Dec ’24€17.02
€22.07
+29.7%
14.5%€29.21€17.82€10.8321
Nov ’24€19.46
€24.96
+28.3%
12.5%€32.15€18.53€9.6821
Oct ’24€22.10
€26.22
+18.7%
9.1%€32.34€22.75€7.9821
Sep ’24€25.40
€27.13
+6.8%
8.5%€32.71€23.37€8.1021
Aug ’24€26.10
€27.06
+3.7%
8.7%€32.69€23.35€9.0621
Jul ’24€24.40
€27.25
+11.7%
8.7%€32.50€23.21€10.4021
Jun ’24€24.80
€28.03
+13.0%
9.0%€33.05€23.27€12.4121
May ’24€29.65
€26.23
-11.5%
11.6%€32.79€19.56€13.6122
Apr ’24€28.90
€26.13
-9.6%
11.5%€32.98€19.68€14.5021
Mar ’24€29.00
€25.03
-13.7%
11.7%€32.00€19.67€15.2622
Feb ’24€28.10
€24.73
-12.0%
11.5%€31.91€19.61€15.4022
Jan ’24€23.40
€23.51
+0.5%
10.4%€30.75€19.70€16.7222
Analyst Price Target
Consensus Narrative from 19 Analysts
€10.93
Fair Value
10.4% overvalued intrinsic discount
19
Number of Analysts

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/19 18:56
End of Day Share Price 2025/01/17 00:00
Earnings2024/09/28
Annual Earnings2024/03/30

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 here.

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 .

Analyst Sources

Burberry Group plc is covered by 57 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Pierre-Yves GauthierAlphaValue
Carole MadjoBarclays
Victoria Lee SternBarclays