Associated British Foods plc

BATS-CHIXE:ABFL Stock Report

Market Cap: UK£16.6b

Associated British Foods Valuation

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

Below Fair Value: ABFL (£22.37) is trading below our estimate of fair value (£27.63)

Significantly Below Fair Value: ABFL 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 ABFL?

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

The above table shows the Price to Earnings ratio for ABFL. This is calculated by dividing ABFL's market cap by their current earnings.
What is ABFL's PE Ratio?
PE Ratio11.4x
EarningsUK£1.46b
Market CapUK£16.56b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ABFL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.3x
CWK Cranswick
24x8.0%UK£2.7b
TATE Tate & Lyle
18.2x17.5%UK£2.8b
PFD Premier Foods
14.5x4.4%UK£1.6b
GNC Greencore Group
16.7x10.7%UK£873.3m
ABFL Associated British Foods
11.4x4.2%UK£16.6b

Price-To-Earnings vs Peers: ABFL is good value based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (18.3x).

Price to Earnings Ratio vs Industry

How does ABFL's PE Ratio compare vs other companies in the European Food Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies18PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ABFL is good value based on its Price-To-Earnings Ratio (11.4x) compared to the European Food industry average (13.5x).

Price to Earnings Ratio vs Fair Ratio

What is ABFL'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.

ABFL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.4x
Fair PE Ratio18.9x

Price-To-Earnings vs Fair Ratio: ABFL is good value based on its Price-To-Earnings Ratio (11.4x) compared to the estimated Fair Price-To-Earnings Ratio (18.9x).

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 ABFL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£22.37
UK£25.89
+15.7%
11.7%UK£31.20UK£19.79n/a17
Nov ’25UK£22.77
UK£25.80
+13.3%
12.0%UK£31.20UK£19.79n/a17
Oct ’25UK£23.22
UK£25.66
+10.5%
11.9%UK£31.20UK£19.79n/a18
Sep ’25UK£24.89
UK£26.67
+7.1%
12.6%UK£34.00UK£19.79n/a18
Aug ’25UK£24.81
UK£26.86
+8.3%
12.3%UK£34.00UK£19.79n/a18
Jul ’25UK£24.87
UK£26.86
+8.0%
12.3%UK£34.00UK£19.79n/a18
Jun ’25UK£25.47
UK£26.83
+5.3%
12.2%UK£34.00UK£19.79n/a18
May ’25UK£26.36
UK£26.33
-0.1%
13.3%UK£34.00UK£19.79n/a18
Apr ’25UK£25.02
UK£24.51
-2.0%
13.4%UK£32.00UK£19.79n/a19
Mar ’25UK£22.77
UK£24.56
+7.9%
13.1%UK£32.00UK£19.79n/a20
Feb ’25UK£22.79
UK£24.42
+7.2%
13.3%UK£32.00UK£19.79n/a20
Jan ’25UK£23.63
UK£23.69
+0.3%
13.5%UK£31.00UK£17.50n/a20
Dec ’24UK£23.87
UK£23.62
-1.0%
13.0%UK£30.00UK£17.50n/a20
Nov ’24UK£20.72
UK£22.57
+9.0%
10.2%UK£28.00UK£17.50UK£22.7720
Oct ’24UK£20.76
UK£22.55
+8.6%
10.3%UK£28.00UK£17.50UK£23.2220
Sep ’24UK£19.86
UK£21.63
+8.9%
11.4%UK£25.00UK£16.00UK£24.8920
Aug ’24UK£20.41
UK£21.58
+5.7%
11.6%UK£25.00UK£16.00UK£24.8120
Jul ’24UK£19.95
UK£21.53
+7.9%
11.4%UK£25.00UK£16.00UK£24.8720
Jun ’24UK£18.31
UK£20.98
+14.6%
12.3%UK£25.30UK£14.50UK£25.4718
May ’24UK£19.56
UK£20.92
+7.0%
12.2%UK£25.30UK£14.50UK£26.3618
Apr ’24UK£19.41
UK£20.85
+7.4%
12.5%UK£25.30UK£14.50UK£25.0218
Mar ’24UK£20.13
UK£20.75
+3.1%
13.2%UK£25.30UK£14.50UK£22.7717
Feb ’24UK£18.73
UK£18.73
-0.03%
16.6%UK£24.40UK£11.75UK£22.7917
Jan ’24UK£15.78
UK£16.50
+4.6%
15.2%UK£22.00UK£11.75UK£23.6318
Dec ’23UK£15.87
UK£16.41
+3.4%
15.6%UK£22.00UK£11.75UK£23.8718
Nov ’23UK£13.82
UK£16.18
+17.1%
19.1%UK£23.00UK£11.00UK£20.7218

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

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