Inghams Group Limited

DB:IH1 Stock Report

Market Cap: €717.8m

Inghams Group Valuation

Is IH1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 IH1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IH1 (€1.91) is trading below our estimate of fair value (€10.99)

Significantly Below Fair Value: IH1 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IH1?

Key metric: As IH1 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for IH1. This is calculated by dividing IH1's market cap by their current earnings.
What is IH1's PE Ratio?
PE Ratio11.5x
EarningsAU$101.50m
Market CapAU$1.17b

Price to Earnings Ratio vs Peers

How does IH1's PE Ratio compare to its peers?

The above table shows the PE ratio for IH1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average10.2x
SSH Südwestdeutsche Salzwerke
15xn/a€598.9m
NLM FRoSTA
12.2xn/a€408.8m
SZU Südzucker
6.7x-10.2%€2.2b
SMB Schwälbchen Molkerei Jakob Berz
6.7xn/a€55.8m
IH1 Inghams Group
11.5x5.2%€1.2b

Price-To-Earnings vs Peers: IH1 is expensive based on its Price-To-Earnings Ratio (11.5x) compared to the peer average (10.2x).

Price to Earnings Ratio vs Industry

How does IH1's PE Ratio compare vs other companies in the European Food Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
IH1 11.5xIndustry Avg. 13.4xNo. of Companies19PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IH1 is good value based on its Price-To-Earnings Ratio (11.5x) compared to the European Food industry average (13.4x).

Price to Earnings Ratio vs Fair Ratio

What is IH1'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.

IH1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.5x
Fair PE Ratio16.2x

Price-To-Earnings vs Fair Ratio: IH1 is good value based on its Price-To-Earnings Ratio (11.5x) compared to the estimated Fair Price-To-Earnings Ratio (16.2x).

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 IH1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€1.91
€2.11
+10.5%
8.0%€2.33€1.80n/a11
Nov ’25€1.69
€2.08
+23.3%
7.7%€2.27€1.78n/a11
Oct ’25€1.75
€2.10
+20.2%
7.0%€2.27€1.78n/a10
Sep ’25€1.85
€2.17
+17.4%
11.9%€2.86€1.78n/a11
Aug ’25€2.20
€2.57
+17.0%
11.9%€3.04€1.91n/a11
Jul ’25€2.24
€2.58
+15.0%
11.7%€3.03€1.91n/a11
Jun ’25€2.12
€2.58
+21.5%
11.7%€3.03€1.91n/a11
May ’25€2.20
€2.58
+17.1%
11.7%€3.03€1.91n/a11
Apr ’25€2.14
€2.58
+20.3%
11.7%€3.03€1.91n/a11
Mar ’25€2.14
€2.58
+20.3%
11.7%€3.03€1.91n/a11
Feb ’25€2.58
€2.60
+0.9%
13.5%€3.21€1.97n/a10
Jan ’25€2.40
€2.49
+3.9%
15.6%€3.24€1.86n/a10
Dec ’24€2.32
€2.44
+5.2%
15.0%€3.18€1.83n/a11
Nov ’24€2.28
€2.41
+5.6%
14.7%€3.18€1.83€1.6911
Oct ’24€1.99
€2.19
+10.3%
12.9%€2.83€1.71€1.7511
Sep ’24€2.06
€2.19
+6.5%
12.9%€2.83€1.71€1.8511
Aug ’24€1.64
€1.92
+16.9%
16.6%€2.42€1.32€2.2011
Jul ’24€1.57
€1.98
+26.1%
16.2%€2.52€1.38€2.2412
Jun ’24€1.67
€1.92
+14.8%
16.0%€2.43€1.33€2.1212
May ’24€1.65
€1.93
+17.1%
15.0%€2.51€1.37€2.2011
Apr ’24€1.87
€1.93
+3.3%
15.0%€2.51€1.37€2.1411
Mar ’24€1.99
€1.99
-0.1%
14.4%€2.57€1.41€2.1412
Feb ’24€1.85
€1.93
+4.5%
15.2%€2.56€1.40€2.5812
Jan ’24€1.80
€1.93
+7.4%
15.2%€2.56€1.40€2.4012
Dec ’23€1.82
€2.01
+10.7%
12.9%€2.61€1.66€2.3211
Nov ’23€1.62
€1.98
+22.2%
12.6%€2.56€1.68€2.2811

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

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