PT Indofood Sukses Makmur Tbk

DB:ISM Stock Report

Market Cap: €4.0b

Indofood Sukses Makmur Valuation

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

Below Fair Value: ISM (€0.41) is trading below our estimate of fair value (€1.19)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ISM. This is calculated by dividing ISM's market cap by their current earnings.
What is ISM's PE Ratio?
PE Ratio6.8x
EarningsRp9.83t
Market CapRp66.73t

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ISM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.1x
SZU Südzucker
6.8x-10.2%€2.3b
SSH Südwestdeutsche Salzwerke
15.3xn/a€630.5m
NLM FRoSTA
12.2xn/a€415.6m
KWS KWS SAAT SE KGaA
10x-1.0%€2.0b
ISM Indofood Sukses Makmur
6.8x11.2%€66.7t

Price-To-Earnings vs Peers: ISM is good value based on its Price-To-Earnings Ratio (6.8x) compared to the peer average (11.1x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ISM 6.8xIndustry Avg. 13.5xNo. of Companies18PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ISM is good value based on its Price-To-Earnings Ratio (6.8x) compared to the European Food industry average (13.4x).

Price to Earnings Ratio vs Fair Ratio

What is ISM'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.

ISM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.8x
Fair PE Ratio21.8x

Price-To-Earnings vs Fair Ratio: ISM is good value based on its Price-To-Earnings Ratio (6.8x) compared to the estimated Fair Price-To-Earnings Ratio (21.8x).

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 ISM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€0.41
€0.54
+30.0%
16.1%€0.72€0.40n/a14
Nov ’25€0.45
€0.49
+9.1%
17.9%€0.69€0.37n/a14
Oct ’25€0.40
€0.48
+20.4%
18.7%€0.70€0.38n/a14
Sep ’25€0.38
€0.48
+26.4%
18.1%€0.69€0.37n/a14
Aug ’25€0.33
€0.46
+38.9%
16.1%€0.67€0.35n/a14
Jul ’25€0.34
€0.46
+34.8%
16.1%€0.67€0.35n/a14
Jun ’25€0.35
€0.47
+32.6%
16.0%€0.68€0.36n/a14
May ’25€0.35
€0.49
+39.7%
16.0%€0.69€0.40n/a14
Apr ’25€0.39
€0.50
+29.6%
15.9%€0.69€0.40n/a14
Mar ’25€0.37
€0.51
+38.3%
13.8%€0.70€0.42n/a14
Feb ’25€0.36
€0.50
+40.0%
12.9%€0.68€0.41n/a15
Jan ’25€0.35
€0.52
+48.3%
13.3%€0.69€0.42n/a14
Dec ’24€0.36
€0.52
+45.1%
13.3%€0.69€0.42n/a14
Nov ’24€0.37
€0.53
+43.0%
11.6%€0.69€0.47€0.4513
Oct ’24€0.39
€0.54
+38.7%
13.0%€0.71€0.42€0.4013
Sep ’24€0.41
€0.54
+33.8%
12.5%€0.71€0.42€0.3814
Aug ’24€0.44
€0.51
+16.7%
9.4%€0.59€0.41€0.3313
Jul ’24€0.43
€0.54
+25.1%
11.4%€0.66€0.42€0.3413
Jun ’24€0.42
€0.54
+29.4%
10.7%€0.68€0.43€0.3514
May ’24€0.41
€0.53
+26.8%
11.1%€0.66€0.42€0.3514
Apr ’24€0.36
€0.53
+47.7%
10.4%€0.67€0.42€0.3914
Mar ’24€0.38
€0.54
+40.2%
11.7%€0.67€0.38€0.3715
Feb ’24€0.38
€0.54
+39.5%
11.7%€0.67€0.38€0.3615
Jan ’24€0.38
€0.52
+34.9%
12.7%€0.66€0.38€0.3514
Dec ’23€0.38
€0.51
+31.9%
13.3%€0.67€0.38€0.3614
Nov ’23€0.39
€0.53
+35.5%
13.3%€0.70€0.40€0.3716

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

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