Imperial Brands PLC

XTRA:ITB Stock Report

Market Cap: €25.3b

Imperial Brands Valuation

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

Below Fair Value: ITB (€30.5) is trading below our estimate of fair value (€91.91)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ITB. This is calculated by dividing ITB's market cap by their current earnings.
What is ITB's PE Ratio?
PE Ratio8.1x
EarningsUK£2.61b
Market CapUK£21.04b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ITB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average15.3x
2914 Japan Tobacco
15.6x6.8%JP¥7.5t
SZU Südzucker
6.8x-10.2%€2.3b
KWS KWS SAAT SE KGaA
9.9x-1.0%€2.0b
ITC ITC
28.9x9.6%₹5.9t
ITB Imperial Brands
8.1x-4.8%€21.0b

Price-To-Earnings vs Peers: ITB is good value based on its Price-To-Earnings Ratio (8.1x) compared to the peer average (11.4x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ITB 8.1xIndustry Avg. 11.6xNo. of Companies8PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ITB is good value based on its Price-To-Earnings Ratio (8.1x) compared to the Global Tobacco industry average (11.6x).

Price to Earnings Ratio vs Fair Ratio

What is ITB'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.

ITB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.1x
Fair PE Ratio17.9x

Price-To-Earnings vs Fair Ratio: ITB is good value based on its Price-To-Earnings Ratio (8.1x) compared to the estimated Fair Price-To-Earnings Ratio (17.9x).

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 ITB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€30.50
€33.06
+8.4%
13.6%€43.32€25.27n/a10
Nov ’25€28.34
€30.64
+8.1%
15.4%€43.10€23.95n/a10
Oct ’25€25.90
€29.34
+13.3%
18.2%€43.13€23.96n/a10
Sep ’25€25.85
€27.22
+5.3%
19.4%€42.39€21.78n/a12
Aug ’25€25.45
€27.22
+6.9%
19.4%€42.39€21.78n/a12
Jul ’25€23.99
€27.22
+13.4%
19.4%€42.39€21.78n/a12
Jun ’25€22.67
€27.62
+21.8%
20.2%€42.16€21.67n/a12
May ’25€21.59
€26.46
+22.6%
22.6%€41.81€19.86n/a12
Apr ’25€21.00
€26.85
+27.8%
21.5%€42.15€21.08n/a12
Mar ’25€20.05
€26.79
+33.6%
20.7%€42.12€21.06n/a13
Feb ’25€22.35
€26.79
+19.9%
20.7%€42.12€21.06n/a13
Jan ’25€21.00
€26.31
+25.3%
20.3%€40.36€19.03n/a15
Dec ’24€21.70
€26.58
+22.5%
19.4%€40.34€19.02n/a15
Nov ’24€20.80
€26.63
+28.0%
19.3%€40.19€18.95€28.3415
Oct ’24€19.50
€26.93
+38.1%
18.0%€40.26€19.32€25.9015
Sep ’24€21.20
€27.58
+30.1%
17.3%€40.65€19.51€25.8516
Aug ’24€21.85
€27.58
+26.2%
17.3%€40.65€19.51€25.4516
Jul ’24€20.50
€27.59
+34.6%
17.2%€40.62€19.50€23.9916
Jun ’24€20.20
€28.35
+40.4%
14.4%€40.73€23.19€22.6717
May ’24€22.50
€27.70
+23.1%
14.1%€39.65€22.58€21.5917
Apr ’24€21.35
€27.60
+29.3%
14.1%€39.62€22.56€21.0017
Mar ’24€22.94
€27.60
+20.3%
14.1%€39.62€22.56€20.0517
Feb ’24€23.30
€27.48
+17.9%
14.1%€39.43€22.61€22.3517
Jan ’24€23.26
€28.24
+21.4%
12.7%€38.37€23.35€21.0017
Dec ’23€24.58
€28.30
+15.1%
12.8%€38.38€23.35€21.7017
Nov ’23€24.91
€27.06
+8.6%
15.1%€37.15€18.74€20.8018

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

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