Aramark

LSE:0HHB Stock Report

Market Cap: US$9.9b

Aramark Valuation

Is 0HHB 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 0HHB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0HHB ($37.64) is trading above our estimate of fair value ($34.47)

Significantly Below Fair Value: 0HHB is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0HHB?

Key metric: As 0HHB is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0HHB. This is calculated by dividing 0HHB's market cap by their current earnings.
What is 0HHB's PE Ratio?
PE Ratio37.6x
EarningsUS$262.52m
Market CapUS$9.87b

Price to Earnings Ratio vs Peers

How does 0HHB's PE Ratio compare to its peers?

The above table shows the PE ratio for 0HHB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average28.2x
GRG Greggs
20.4x6.0%UK£2.8b
ROO Deliveroo
42.6x39.0%UK£2.1b
CPG Compass Group
40.1x16.9%UK£44.9b
MAB Mitchells & Butlers
9.8x7.0%UK£1.5b
0HHB Aramark
37.6x20.1%US$9.9b

Price-To-Earnings vs Peers: 0HHB is expensive based on its Price-To-Earnings Ratio (37.6x) compared to the peer average (28.2x).

Price to Earnings Ratio vs Industry

How does 0HHB's PE Ratio compare vs other companies in the GB Hospitality Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
TAST Tasty
0.4x-75.9%US$2.35m
No more companies available in this PE range
0HHB 37.6xIndustry Avg. 19.5xNo. of Companies5PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0HHB is expensive based on its Price-To-Earnings Ratio (37.6x) compared to the UK Hospitality industry average (19.5x).

Price to Earnings Ratio vs Fair Ratio

What is 0HHB'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.

0HHB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio37.6x
Fair PE Ratio32.1x

Price-To-Earnings vs Fair Ratio: 0HHB is expensive based on its Price-To-Earnings Ratio (37.6x) compared to the estimated Fair Price-To-Earnings Ratio (32.1x).

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 0HHB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$37.64
US$44.73
+18.8%
5.4%US$49.00US$38.43n/a15
Dec ’25US$40.86
US$43.70
+6.9%
5.3%US$47.00US$38.43n/a15
Nov ’25US$38.43
US$40.76
+6.1%
5.4%US$45.50US$38.00n/a15
Oct ’25US$38.03
US$39.86
+4.8%
3.5%US$42.50US$38.00n/a14
Sep ’25US$36.40
US$38.63
+6.1%
4.0%US$40.50US$35.00n/a15
Aug ’25US$33.29
US$36.40
+9.3%
5.9%US$40.00US$32.00n/a16
Jul ’25US$33.27
US$36.40
+9.4%
5.9%US$40.00US$32.00n/a16
Jun ’25US$32.06
US$35.30
+10.1%
3.6%US$37.00US$32.00n/a16
May ’25US$31.20
US$34.46
+10.4%
5.1%US$37.00US$30.00n/a16
Apr ’25US$32.46
US$34.37
+5.9%
5.1%US$37.00US$30.00n/a16
Mar ’25US$30.83
US$34.24
+11.1%
4.8%US$36.00US$30.00n/a16
Feb ’25US$29.57
US$31.97
+8.1%
5.7%US$35.00US$28.00n/a17
Jan ’25US$27.95
US$31.77
+13.7%
6.0%US$35.00US$28.00n/a15
Dec ’24US$28.26
US$31.61
+11.8%
7.2%US$35.00US$26.00US$40.8614
Nov ’24US$27.24
US$31.81
+16.8%
9.7%US$36.50US$27.00US$38.4313
Oct ’24US$34.98
US$44.93
+28.5%
9.8%US$50.00US$33.00US$38.0315
Sep ’24US$37.82
US$46.03
+21.7%
6.7%US$50.00US$38.00US$36.4015
Aug ’24US$40.24
US$44.37
+10.3%
9.0%US$50.00US$36.00US$33.2915
Jul ’24US$42.76
US$43.60
+2.0%
9.2%US$50.00US$36.00US$33.2715
Jun ’24US$38.96
US$43.71
+12.2%
9.5%US$50.00US$36.00US$32.0614
May ’24US$33.92
US$44.29
+30.6%
11.9%US$55.00US$36.00US$31.2014
Apr ’24US$34.97
US$44.79
+28.1%
11.4%US$55.00US$36.00US$32.4614
Mar ’24US$36.90
US$45.50
+23.3%
10.0%US$55.00US$36.00US$30.8314
Feb ’24US$44.11
US$46.04
+4.4%
10.1%US$55.00US$36.00US$29.5714
Jan ’24n/a
US$44.00
0%
10.5%US$51.00US$36.00US$27.9515
Dec ’23US$42.02
US$43.53
+3.6%
10.5%US$51.00US$34.00US$28.2615

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 12:59
End of Day Share Price 2024/12/19 00:00
Earnings2024/09/27
Annual Earnings2024/09/27

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

Aramark is covered by 25 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Andrew WittmannBaird
Manav PatnaikBarclays
Stuart GordonBerenberg