Burberry Group plc

BATS-CHIXE:BRBYL Stock Report

Market Cap: UK£3.6b

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-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales 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.

Discounted Cash Flow
Simply Wall St
UK£21.55
Fair Value
53.3% undervalued intrinsic discount
19
Number of Analysts

Below Fair Value: BRBYL (£10.07) is trading below our estimate of fair value (£21.55)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for BRBYL. This is calculated by dividing BRBYL's market cap by their current revenue.
What is BRBYL's PS Ratio?
PS Ratio1.5x
SalesUK£2.46b
Market CapUK£3.61b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for BRBYL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.2x
MUL Mulberry Group
0.5xn/aUK£70.1m
BKG Berkeley Group Holdings
1.5x-0.70%UK£3.8b
PSN Persimmon
1.3x6.91%UK£4.2b
BWY Bellway
1.3x9.39%UK£3.4b
BRBYL Burberry Group
1.5x4.16%UK£3.6b

Price-To-Sales vs Peers: BRBYL is expensive based on its Price-To-Sales Ratio (1.5x) compared to the peer average (1.2x).

Price to Sales Ratio vs Industry

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

13 CompaniesPrice / SalesEstimated GrowthMarket Cap
No. of Companies18PS00.61.21.82.43+
13 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: BRBYL is expensive based on its Price-To-Sales Ratio (1.5x) compared to the European Luxury industry average (0.7x).

Price to Sales Ratio vs Fair Ratio

What is BRBYL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BRBYL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.5x
Fair PS Ratio1.9x

Price-To-Sales vs Fair Ratio: BRBYL is good value based on its Price-To-Sales Ratio (1.5x) compared to the estimated Fair Price-To-Sales Ratio (1.9x).

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£10.07
UK£10.57
+4.98%
21.12%UK£14.00UK£4.90n/a19
Jun ’26UK£10.36
UK£10.26
-1.01%
20.16%UK£14.00UK£4.90n/a19
May ’26UK£7.39
UK£9.29
+25.66%
21.66%UK£13.30UK£4.90n/a19
Apr ’26UK£7.52
UK£10.47
+39.29%
23.17%UK£14.00UK£4.90n/a19
Mar ’26UK£10.79
UK£10.78
-0.13%
22.92%UK£14.00UK£4.90n/a19
Feb ’26UK£11.94
UK£10.78
-9.69%
22.92%UK£14.00UK£4.90n/a19
Jan ’26UK£9.73
UK£8.58
-11.76%
25.32%UK£13.30UK£4.75n/a19
Dec ’25UK£8.96
UK£8.06
-10.05%
25.95%UK£13.30UK£4.75n/a19
Nov ’25UK£8.12
UK£7.18
-11.52%
28.23%UK£13.30UK£4.10n/a19
Oct ’25UK£6.68
UK£7.05
+5.56%
26.67%UK£13.30UK£4.10n/a19
Sep ’25UK£6.71
UK£8.12
+21.10%
19.01%UK£13.30UK£4.77n/a19
Aug ’25UK£7.68
UK£8.44
+9.88%
20.91%UK£13.30UK£4.90n/a19
Jul ’25UK£8.57
UK£10.66
+24.40%
15.95%UK£15.70UK£7.20n/a19
Jun ’25UK£10.41
UK£11.79
+13.36%
17.00%UK£16.80UK£7.50UK£10.3619
May ’25UK£11.45
UK£13.42
+17.22%
17.14%UK£21.00UK£9.90UK£7.3919
Apr ’25UK£12.19
UK£13.73
+12.68%
16.66%UK£21.00UK£10.00UK£7.5219
Mar ’25UK£12.89
UK£14.23
+10.42%
14.57%UK£21.00UK£10.00UK£10.7920
Feb ’25UK£12.82
UK£14.99
+16.91%
19.36%UK£24.00UK£10.99UK£11.9421
Jan ’25UK£14.21
UK£18.08
+27.23%
17.52%UK£25.00UK£15.00UK£9.7321
Dec ’24UK£14.87
UK£18.88
+26.99%
14.47%UK£25.00UK£15.25UK£8.9621
Nov ’24UK£16.89
UK£21.74
+28.73%
12.53%UK£28.00UK£16.14UK£8.1221
Oct ’24UK£19.10
UK£22.70
+18.87%
9.15%UK£28.00UK£19.70UK£6.6821
Sep ’24UK£21.83
UK£23.22
+6.38%
8.54%UK£28.00UK£20.00UK£6.7121
Aug ’24UK£22.14
UK£23.18
+4.68%
8.65%UK£28.00UK£20.00UK£7.6821
Jul ’24UK£21.23
UK£23.48
+10.60%
8.65%UK£28.00UK£20.00UK£8.5721
Jun ’24UK£21.41
UK£24.09
+12.51%
8.98%UK£28.40UK£20.00UK£10.4121
AnalystConsensusTarget
Consensus Narrative from 19 Analysts
UK£10.59
Fair Value
4.9% undervalued intrinsic discount
19
Number of Analysts

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

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/06/23 14:28
End of Day Share Price 2025/06/20 00:00
Earnings2025/03/29
Annual Earnings2025/03/29

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.

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 Github.

Analyst Sources

Burberry Group plc is covered by 52 analysts. 17 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Carole MadjoBarclays
Victoria Lee SternBarclays
John William GuyBerenberg