Burberry Group plc

BATS-CHIXE:BRBYL Stock Report

Market Cap: UK£3.8b

Burberry Group Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: BRBYL (£10.57) is trading above our estimate of fair value (£10.01)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

BRBYL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.7x
Enterprise Value/EBITDA9.4x
PEG Ratio1.4x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BRBYL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.3x
MUL Mulberry Group
19.5xn/aUK£71.6m
VTY Vistry Group
19.8x16.9%UK£4.4b
BDEV Barratt Developments
22.6x18.4%UK£4.9b
GAW Games Workshop Group
23.3x3.8%UK£3.3b
BRBYL Burberry Group
14x9.8%UK£3.8b

Price-To-Earnings vs Peers: BRBYL is good value based on its Price-To-Earnings Ratio (14x) compared to the peer average (21.1x).


Price to Earnings Ratio vs Industry

How does BRBYL's PE Ratio compare vs other companies in the European Luxury Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.2%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a10.2%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: BRBYL is good value based on its Price-To-Earnings Ratio (14x) compared to the European Luxury industry average (17.4x).


Price to Earnings Ratio vs Fair Ratio

What is BRBYL'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.

BRBYL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14x
Fair PE Ratio18x

Price-To-Earnings vs Fair Ratio: BRBYL is good value based on its Price-To-Earnings Ratio (14x) compared to the estimated Fair Price-To-Earnings Ratio (18x).


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 BRBYL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£10.57
UK£12.35
+16.8%
17.1%UK£16.80UK£7.50n/a19
May ’25UK£11.45
UK£13.42
+17.2%
17.1%UK£21.00UK£9.90n/a19
Apr ’25UK£12.19
UK£13.73
+12.7%
16.7%UK£21.00UK£10.00n/a19
Mar ’25UK£12.89
UK£14.23
+10.4%
14.6%UK£21.00UK£10.00n/a20
Feb ’25UK£12.82
UK£14.99
+16.9%
19.4%UK£24.00UK£10.99n/a21
Jan ’25UK£14.21
UK£18.08
+27.2%
17.5%UK£25.00UK£15.00n/a21
Dec ’24UK£14.87
UK£18.88
+27.0%
14.5%UK£25.00UK£15.25n/a21
Nov ’24UK£16.89
UK£21.74
+28.7%
12.5%UK£28.00UK£16.14n/a21
Oct ’24UK£19.10
UK£22.70
+18.9%
9.1%UK£28.00UK£19.70n/a21
Sep ’24UK£21.83
UK£23.22
+6.4%
8.5%UK£28.00UK£20.00n/a21
Aug ’24UK£22.14
UK£23.18
+4.7%
8.7%UK£28.00UK£20.00n/a21
Jul ’24UK£21.23
UK£23.48
+10.6%
8.7%UK£28.00UK£20.00n/a21
Jun ’24UK£21.41
UK£24.09
+12.5%
9.0%UK£28.40UK£20.00n/a21
May ’24UK£25.84
UK£23.20
-10.2%
11.6%UK£29.00UK£17.30UK£11.4522
Apr ’24UK£25.84
UK£22.97
-11.1%
11.5%UK£29.00UK£17.30UK£12.1921
Mar ’24UK£25.00
UK£22.02
-11.9%
11.7%UK£28.15UK£17.30UK£12.8922
Feb ’24UK£24.25
UK£21.82
-10.0%
11.5%UK£28.15UK£17.30UK£12.8222
Jan ’24UK£20.39
UK£20.65
+1.3%
10.4%UK£27.00UK£17.30UK£14.2122
Dec ’23UK£21.52
UK£20.38
-5.3%
11.2%UK£27.00UK£15.00UK£14.8722
Nov ’23UK£18.44
UK£19.38
+5.1%
9.4%UK£24.90UK£15.00UK£16.8922
Oct ’23UK£18.06
UK£19.20
+6.4%
9.3%UK£24.10UK£15.00UK£19.1022
Sep ’23UK£16.85
UK£19.34
+14.8%
8.9%UK£24.00UK£15.00UK£21.8322
Aug ’23UK£17.85
UK£19.25
+7.8%
9.2%UK£24.00UK£15.00UK£22.1422
Jul ’23UK£16.35
UK£19.73
+20.7%
10.3%UK£25.00UK£15.00UK£21.2323
Jun ’23UK£17.04
UK£19.91
+16.9%
11.9%UK£25.45UK£15.00UK£21.4123
May ’23UK£15.90
UK£20.15
+26.7%
12.5%UK£25.00UK£15.00UK£25.8423

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


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