Burberry Group plc

BATS-CHIXE:BRBYL Stock Report

Market Cap: UK£3.4b

Burberry Group Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • 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 (£9.52) is trading below our estimate of fair value (£10.16)

Significantly Below Fair Value: BRBYL is trading below fair value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BRBYL. This is calculated by dividing BRBYL's market cap by their current earnings.
What is BRBYL's PE Ratio?
PE Ratio89.4x
EarningsUK£38.00m
Market CapUK£3.40b

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 Average16.5x
COA Coats Group
18.7x15.5%UK£1.5b
BKG Berkeley Group Holdings
10.5x-5.6%UK£4.0b
BWY Bellway
21.7x21.7%UK£2.8b
PSN Persimmon
15.1x18.5%UK£3.9b
BRBYL Burberry Group
89.4x43.0%UK£3.4b

Price-To-Earnings vs Peers: BRBYL is expensive based on its Price-To-Earnings Ratio (89.4x) compared to the peer average (16.5x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies8PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BRBYL is expensive based on its Price-To-Earnings Ratio (89.4x) compared to the European Luxury industry average (15.2x).

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 Ratio89.4x
Fair PE Ratio40.6x

Price-To-Earnings vs Fair Ratio: BRBYL is expensive based on its Price-To-Earnings Ratio (89.4x) compared to the estimated Fair Price-To-Earnings Ratio (40.6x).

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£9.52
UK£8.45
-11.3%
26.3%UK£13.30UK£4.75n/a19
Dec ’25UK£8.96
UK£8.06
-10.0%
25.9%UK£13.30UK£4.75n/a19
Nov ’25UK£8.12
UK£7.18
-11.5%
28.2%UK£13.30UK£4.10n/a19
Oct ’25UK£6.68
UK£7.05
+5.6%
26.7%UK£13.30UK£4.10n/a19
Sep ’25UK£6.71
UK£8.12
+21.1%
19.0%UK£13.30UK£4.77n/a19
Aug ’25UK£7.68
UK£8.44
+9.9%
20.9%UK£13.30UK£4.90n/a19
Jul ’25UK£8.57
UK£10.66
+24.4%
16.0%UK£15.70UK£7.20n/a19
Jun ’25UK£10.41
UK£11.79
+13.4%
17.0%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£15.25UK£8.9621
Nov ’24UK£16.89
UK£21.74
+28.7%
12.5%UK£28.00UK£16.14UK£8.1221
Oct ’24UK£19.10
UK£22.70
+18.9%
9.1%UK£28.00UK£19.70UK£6.6821
Sep ’24UK£21.83
UK£23.22
+6.4%
8.5%UK£28.00UK£20.00UK£6.7121
Aug ’24UK£22.14
UK£23.18
+4.7%
8.7%UK£28.00UK£20.00UK£7.6821
Jul ’24UK£21.23
UK£23.48
+10.6%
8.7%UK£28.00UK£20.00UK£8.5721
Jun ’24UK£21.41
UK£24.09
+12.5%
9.0%UK£28.40UK£20.00UK£10.4121
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

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/19 23:02
End of Day Share Price 2024/12/19 00:00
Earnings2024/09/28
Annual Earnings2024/03/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Burberry Group plc is covered by 58 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Pierre-Yves GauthierAlphaValue
Victoria Lee SternBarclays
Carole MadjoBarclays