Mitchells & Butlers plc

LSE:MAB Stock Report

Market Cap: UK£1.8b

Mitchells & Butlers Valuation

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

Below Fair Value: MAB (£3.01) is trading above our estimate of fair value (£2.79)

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?

Other financial metrics that can be useful for relative valuation.

MAB 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/Revenue1.3x
Enterprise Value/EBITDA8.7x
PEG Ratio1.4x

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 Average59.1x
JDW J D Wetherspoon
21.8x18.6%UK£901.8m
SSPG SSP Group
176.6x50.7%UK£1.3b
GRG Greggs
22.9x7.7%UK£3.1b
DOM Domino's Pizza Group
15.2x9.7%UK£1.2b
MAB Mitchells & Butlers
39.7x29.4%UK£1.8b

Price-To-Earnings vs Peers: MAB is good value based on its Price-To-Earnings Ratio (39.7x) compared to the peer average (59.1x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.0%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a21.0%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: MAB is expensive based on its Price-To-Earnings Ratio (39.7x) compared to the UK Hospitality industry average (22.3x).

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 Ratio39.7x
Fair PE Ratio30.9x

Price-To-Earnings vs Fair Ratio: MAB is expensive based on its Price-To-Earnings Ratio (39.7x) compared to the estimated Fair Price-To-Earnings Ratio (30.9x).

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 MAB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£3.01
UK£3.51
+16.6%
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£2.17n/a9
Nov ’24UK£2.13
UK£2.67
+25.6%
12.1%UK£3.10UK£2.15n/a10
Oct ’24UK£2.26
UK£2.70
+19.5%
12.5%UK£3.25UK£2.15n/a11
Sep ’24UK£2.20
UK£2.67
+21.4%
13.1%UK£3.25UK£2.13n/a11
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
Nov ’23UK£1.27
UK£1.96
+54.4%
30.3%UK£3.20UK£1.10UK£2.1310
Oct ’23UK£1.15
UK£2.24
+94.5%
22.6%UK£3.20UK£1.69UK£2.2610
Sep ’23UK£1.49
UK£2.66
+78.1%
21.3%UK£3.50UK£1.80UK£2.2010
Aug ’23UK£1.78
UK£2.71
+52.9%
21.0%UK£3.50UK£1.80UK£2.2811

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

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