Imperial Brands Valuation

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

Below Fair Value: ITBA (€30.6) is trading below our estimate of fair value (€92.28)

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


Key Valuation Metric

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

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

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

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ITBA 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
ITBA Imperial Brands
8.1x-4.8%€21.0b

Price-To-Earnings vs Peers: ITBA 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 ITBA's PE Ratio compare vs other companies in the Global Tobacco Industry?

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

Price-To-Earnings vs Industry: ITBA is good value based on its Price-To-Earnings Ratio (8.1x) compared to the Global Tobacco industry average (11.7x).


Price to Earnings Ratio vs Fair Ratio

What is ITBA'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.

ITBA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.1x
Fair PE Ratio18.2x

Price-To-Earnings vs Fair Ratio: ITBA is good value based on its Price-To-Earnings Ratio (8.1x) compared to the estimated Fair Price-To-Earnings Ratio (18.2x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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