Mitchells & Butlers plc

LSE:MAB Stock Report

Market Cap: UK£1.5b

Mitchells & Butlers Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: MAB (£2.5) is trading above our estimate of fair value (£2.3)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MAB. This is calculated by dividing MAB's market cap by their current earnings.
What is MAB's PE Ratio?
PE Ratio10x
EarningsUK£149.00m
Market CapUK£1.49b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MAB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average34x
DOM Domino's Pizza Group
17.4x9.0%UK£1.3b
SSPG SSP Group
52.5x36.4%UK£1.4b
GRG Greggs
20.3x6.3%UK£2.8b
ROO Deliveroo
46x38.3%UK£2.3b
MAB Mitchells & Butlers
10x7.0%UK£1.5b

Price-To-Earnings vs Peers: MAB is good value based on its Price-To-Earnings Ratio (10x) compared to the peer average (34x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
TAST Tasty
0.4x-75.9%US$2.40m
No more companies available in this PE range
MAB 10.0xIndustry Avg. 18.3xNo. of Companies4PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MAB is good value based on its Price-To-Earnings Ratio (10x) compared to the UK Hospitality industry average (18.3x).

Price to Earnings Ratio vs Fair Ratio

What is MAB'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.

MAB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10x
Fair PE Ratio20.7x

Price-To-Earnings vs Fair Ratio: MAB is good value based on its Price-To-Earnings Ratio (10x) compared to the estimated Fair Price-To-Earnings Ratio (20.8x).

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 MAB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£2.50
UK£3.42
+36.9%
10.9%UK£4.00UK£2.80n/a9
Nov ’25UK£2.53
UK£3.58
+41.7%
6.4%UK£4.00UK£3.20n/a9
Oct ’25UK£2.95
UK£3.51
+18.8%
8.8%UK£4.00UK£2.85n/a10
Sep ’25UK£2.97
UK£3.51
+18.0%
8.8%UK£4.00UK£2.85n/a10
Aug ’25UK£3.17
UK£3.51
+10.6%
8.8%UK£4.00UK£2.85n/a10
Jul ’25UK£2.87
UK£3.42
+19.2%
8.1%UK£4.00UK£2.85n/a10
Jun ’25UK£3.08
UK£3.35
+8.8%
6.0%UK£3.60UK£2.85n/a10
May ’25UK£2.46
UK£3.11
+26.7%
5.8%UK£3.40UK£2.85n/a10
Apr ’25UK£2.26
UK£3.11
+37.7%
5.8%UK£3.40UK£2.85n/a10
Mar ’25UK£2.38
UK£3.10
+30.5%
6.3%UK£3.40UK£2.75n/a10
Feb ’25UK£2.58
UK£3.05
+18.2%
7.3%UK£3.40UK£2.70n/a10
Jan ’25UK£2.58
UK£2.88
+11.5%
7.0%UK£3.20UK£2.50n/a10
Dec ’24UK£2.24
UK£2.79
+24.4%
10.6%UK£3.10UK£2.17UK£2.479
Nov ’24UK£2.13
UK£2.67
+25.6%
12.1%UK£3.10UK£2.15UK£2.5310
Oct ’24UK£2.26
UK£2.70
+19.5%
12.5%UK£3.25UK£2.15UK£2.9511
Sep ’24UK£2.20
UK£2.67
+21.4%
13.1%UK£3.25UK£2.13UK£2.9711
Aug ’24UK£2.28
UK£2.63
+15.1%
11.3%UK£3.10UK£2.13UK£3.1711
Jul ’24UK£2.04
UK£2.54
+24.3%
10.7%UK£3.00UK£2.13UK£2.8711
Jun ’24UK£2.06
UK£2.39
+15.7%
15.6%UK£3.00UK£1.48UK£3.0811
May ’24UK£1.75
UK£1.93
+10.2%
17.7%UK£2.60UK£1.40UK£2.4611
Apr ’24UK£1.65
UK£1.93
+17.3%
17.7%UK£2.60UK£1.40UK£2.2611
Mar ’24UK£1.64
UK£1.93
+18.0%
17.7%UK£2.60UK£1.40UK£2.3811
Feb ’24UK£1.64
UK£1.93
+17.8%
17.7%UK£2.60UK£1.40UK£2.5811
Jan ’24UK£1.38
UK£1.78
+29.0%
23.6%UK£2.60UK£1.10UK£2.5812
Dec ’23UK£1.44
UK£1.81
+25.9%
23.6%UK£2.60UK£1.10UK£2.2410

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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