Imperial Brands PLC

XTRA:ITB Stock Report

Market Cap: €25.6b

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 (€30.88) is trading below our estimate of fair value (€86.41)

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£21.28b

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 Average15x
2914 Japan Tobacco
15.2x6.6%JP¥7.3t
ITC ITC
29.1x9.6%₹6.0t
KWS KWS SAAT SE KGaA
9.5x1.2%€1.9b
SZU Südzucker
6.2x-10.2%€2.1b
ITB Imperial Brands
8.1x-4.8%€21.3b

Price-To-Earnings vs Peers: ITB is good value based on its Price-To-Earnings Ratio (8.1x) compared to the peer average (15x).

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. 12.6xNo. of Companies10PE01020304050+
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 (12.3x).

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€30.88
€34.06
+10.3%
12.6%€43.50€25.38n/a10
Dec ’25€30.95
€33.75
+9.1%
12.6%€43.20€25.20n/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€19.02€30.9515
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

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

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/23 19:42
End of Day Share Price 2024/12/23 00:00
Earnings2024/09/30
Annual Earnings2024/09/30

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

Imperial Brands PLC is covered by 38 analysts. 7 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Anna ZyniewiczAlphaValue
Simon HalesBarclays
David HayesBarclays