H & M Hennes & Mauritz AB (publ)

DB:HMSB Stock Report

Market Cap: €21.3b

H & M Hennes & Mauritz Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: HMSB (€13.26) is trading above our estimate of fair value (€8.58)

Significantly Below Fair Value: HMSB is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HMSB. This is calculated by dividing HMSB's market cap by their current earnings.
What is HMSB's PE Ratio?
PE Ratio24.4x
EarningsSEK 10.12b
Market CapSEK 246.56b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HMSB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.3x
ZAL Zalando
34.3x21.9%€7.1b
FIE Fielmann Group
24x18.9%€3.4b
HBM HORNBACH Baumarkt
24.3xn/a€1.9b
FSNT Platform Group
2.6x-34.2%€145.7m
HMSB H & M Hennes & Mauritz
24.4x16.9%€246.6b

Price-To-Earnings vs Peers: HMSB is expensive based on its Price-To-Earnings Ratio (24.4x) compared to the peer average (21.6x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HMSB 24.4xIndustry Avg. 16.4xNo. of Companies12PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HMSB is expensive based on its Price-To-Earnings Ratio (24.4x) compared to the European Specialty Retail industry average (16.4x).

Price to Earnings Ratio vs Fair Ratio

What is HMSB'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.

HMSB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.4x
Fair PE Ratio18.1x

Price-To-Earnings vs Fair Ratio: HMSB is expensive based on its Price-To-Earnings Ratio (24.4x) compared to the estimated Fair Price-To-Earnings Ratio (18.1x).

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 HMSB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€13.64
€14.52
+6.5%
14.6%€17.26€10.36n/a28
Oct ’25€15.08
€15.07
-0.03%
13.6%€17.74€10.64n/a28
Sep ’25€14.45
€15.09
+4.4%
14.5%€18.51€10.57n/a26
Aug ’25€14.40
€15.52
+7.8%
15.2%€18.49€10.57n/a26
Jul ’25€15.05
€15.34
+2.0%
15.1%€18.43€10.53n/a26
Jun ’25€16.13
€14.97
-7.2%
16.2%€19.27€10.51n/a25
May ’25€14.88
€14.38
-3.4%
15.2%€17.98€10.27n/a26
Apr ’25€15.21
€14.30
-6.0%
16.3%€18.18€10.39n/a27
Mar ’25€12.66
€14.06
+11.1%
14.2%€17.86€10.18n/a28
Feb ’25€12.75
€14.54
+14.1%
14.4%€17.71€10.09n/a28
Jan ’25€15.92
€15.77
-1.0%
12.6%€19.05€11.16n/a28
Dec ’24€14.75
€15.27
+3.5%
13.1%€18.47€10.82n/a28
Nov ’24€12.65
€14.93
+18.0%
12.9%€18.22€10.67€13.6427
Oct ’24€13.22
€14.95
+13.1%
13.1%€18.20€10.66€15.0826
Sep ’24€14.11
€14.70
+4.2%
17.0%€18.61€9.89€14.4526
Aug ’24€15.24
€15.04
-1.3%
17.5%€19.11€10.16€14.4026
Jul ’24€15.66
€13.91
-11.2%
18.8%€18.27€9.35€15.0526
Jun ’24€12.01
€12.36
+2.9%
17.5%€15.95€8.36€16.1324
May ’24€13.23
€12.38
-6.4%
19.7%€16.35€7.51€14.8825
Apr ’24€13.14
€11.95
-9.0%
21.0%€16.43€7.55€15.2125
Mar ’24€11.97
€11.00
-8.1%
21.0%€16.24€6.80€12.6625
Feb ’24€11.38
€10.32
-9.4%
21.2%€15.77€6.61€12.7525
Jan ’24€10.14
€10.15
+0.2%
25.5%€17.21€6.34€15.9225
Dec ’23€10.80
€10.22
-5.4%
21.2%€16.49€7.83€14.7525
Nov ’23€10.22
€10.11
-1.1%
20.8%€16.39€7.78€12.6525

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

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