Abercrombie & Fitch Valuation

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

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: AFT (€131.4) is trading below our estimate of fair value (€254.08)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for AFT. This is calculated by dividing AFT's market cap by their current earnings.
What is AFT's PE Ratio?
PE Ratio14.7x
EarningsUS$501.68m
Market CapUS$7.39b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AFT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.7x
ZAL Zalando
34.7x22.0%€7.1b
FIE Fielmann Group
24.5x18.9%€3.5b
HBM HORNBACH Baumarkt
25xn/a€1.9b
FSNT Platform Group
2.7x-34.2%€148.2m
AFT Abercrombie & Fitch
14.7x2.9%€7.4b

Price-To-Earnings vs Peers: AFT is good value based on its Price-To-Earnings Ratio (14.7x) compared to the peer average (21.7x).


Price to Earnings Ratio vs Industry

How does AFT's PE Ratio compare vs other companies in the European Specialty Retail Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AFT 14.7xIndustry Avg. 16.4xNo. of Companies12PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AFT is good value based on its Price-To-Earnings Ratio (14.7x) compared to the European Specialty Retail industry average (16.4x).


Price to Earnings Ratio vs Fair Ratio

What is AFT'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.

AFT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.7x
Fair PE Ratio15.7x

Price-To-Earnings vs Fair Ratio: AFT is good value based on its Price-To-Earnings Ratio (14.7x) compared to the estimated Fair Price-To-Earnings Ratio (15.7x).


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 AFT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€131.40
€176.29
+34.2%
12.2%€209.26€139.83n/a6
Nov ’25€125.16
€168.10
+34.3%
12.6%€200.44€133.93n/a6
Oct ’25€126.46
€166.95
+32.0%
12.5%€199.25€133.14n/a6
Sep ’25€124.50
€165.68
+33.1%
11.9%€194.12€132.73n/a6
Aug ’25€134.20
€179.43
+33.7%
7.0%€197.50€158.00n/a6
Jul ’25€172.50
€176.22
+2.2%
9.1%€198.53€154.21n/a6
Jun ’25€165.90
€176.22
+6.2%
9.1%€198.53€154.21n/a6
May ’25€112.38
€126.77
+12.8%
12.1%€143.11€95.10n/a7
Apr ’25€112.76
€126.77
+12.4%
12.1%€143.11€95.10n/a7
Mar ’25€118.16
€113.20
-4.2%
18.2%€137.50€74.75n/a6
Feb ’25€94.00
€91.97
-2.2%
11.4%€109.81€74.12n/a6
Jan ’25n/a
€72.73
0%
11.0%€86.55€61.95n/a6
Dec ’24€71.35
€71.03
-0.4%
7.7%€77.57€62.06n/a6
Nov ’24€57.70
€54.69
-5.2%
8.6%€60.77€47.68€125.166
Oct ’24€51.29
€54.69
+6.6%
8.6%€60.77€47.68€126.466
Sep ’24€49.03
€53.23
+8.6%
8.4%€60.17€47.21€124.506
Aug ’24€36.00
€29.78
-17.3%
24.1%€40.82€16.33€134.206
Jul ’24n/a
€29.66
0%
22.8%€39.25€16.43€172.506
Jun ’24n/a
€29.05
0%
19.2%€32.63€16.78€165.906
May ’24n/a
€26.91
0%
21.1%€32.29€15.68€112.386
Apr ’24n/a
€26.91
0%
21.1%€32.29€15.68€112.766
Mar ’24n/a
€26.82
0%
23.5%€32.83€15.01€118.165
Feb ’24n/a
€25.92
0%
20.1%€30.37€14.72€94.006
Jan ’24€20.63
€22.58
+9.5%
16.0%€26.13€15.48n/a6
Dec ’23€17.39
€22.58
+29.9%
16.0%€26.13€15.48€71.356
Nov ’23n/a
€19.74
0%
17.7%€25.31€15.18€57.706

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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