Bakkavor Group plc

BATS-CHIXE:BAKKL Stock Report

Market Cap: UK£751.9m

Bakkavor Group Valuation

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

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: BAKKL (£1.3) is trading below our estimate of fair value (£1.86)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BAKKL. This is calculated by dividing BAKKL's market cap by their current earnings.
What is BAKKL's PE Ratio?
PE Ratio11.7x
EarningsUK£64.00m
Market CapUK£751.86m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BAKKL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.2x
HFG Hilton Food Group
17.8x10.5%UK£827.9m
GNC Greencore Group
16.6x10.7%UK£868.0m
PFD Premier Foods
14.4x6.3%UK£1.6b
MHPC MHP
3.9xn/aUS$446.3m
BAKKL Bakkavor Group
11.7x11.2%UK£751.9m

Price-To-Earnings vs Peers: BAKKL is good value based on its Price-To-Earnings Ratio (11.7x) compared to the peer average (13.2x).

Price to Earnings Ratio vs Industry

How does BAKKL'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: BAKKL is good value based on its Price-To-Earnings Ratio (11.7x) compared to the European Food industry average (13.5x).

Price to Earnings Ratio vs Fair Ratio

What is BAKKL'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.

BAKKL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.7x
Fair PE Ratio16.7x

Price-To-Earnings vs Fair Ratio: BAKKL is good value based on its Price-To-Earnings Ratio (11.7x) compared to the estimated Fair Price-To-Earnings Ratio (16.7x).

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 BAKKL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.30
UK£1.73
+33.2%
3.6%UK£1.80UK£1.65n/a6
Nov ’25UK£1.47
UK£1.73
+17.7%
3.6%UK£1.80UK£1.65n/a6
Oct ’25UK£1.57
UK£1.73
+9.9%
3.6%UK£1.80UK£1.65n/a6
Sep ’25UK£1.54
UK£1.51
-1.9%
7.6%UK£1.70UK£1.38n/a6
Aug ’25UK£1.53
UK£1.48
-3.4%
5.3%UK£1.60UK£1.38n/a6
Jul ’25UK£1.43
UK£1.45
+1.3%
7.0%UK£1.60UK£1.30n/a6
Jun ’25UK£1.40
UK£1.28
-8.7%
12.3%UK£1.45UK£1.00n/a6
May ’25UK£1.20
UK£1.19
-0.8%
10.6%UK£1.35UK£1.00n/a5
Apr ’25UK£1.09
UK£1.16
+6.5%
11.6%UK£1.35UK£1.00n/a6
Mar ’25UK£0.96
UK£1.12
+15.8%
9.9%UK£1.30UK£1.00n/a6
Feb ’25UK£0.93
UK£1.12
+20.6%
9.9%UK£1.30UK£1.00n/a6
Jan ’25UK£0.81
UK£1.07
+32.6%
8.2%UK£1.20UK£0.97n/a5
Dec ’24UK£0.84
UK£1.09
+29.1%
7.8%UK£1.20UK£0.97n/a6
Nov ’24UK£0.86
UK£1.09
+26.4%
7.8%UK£1.20UK£0.97UK£1.476
Oct ’24UK£0.95
UK£1.09
+14.6%
7.8%UK£1.20UK£0.97UK£1.576
Sep ’24UK£0.99
UK£1.09
+10.5%
8.4%UK£1.20UK£0.97UK£1.545
Aug ’24UK£0.98
UK£1.09
+11.2%
8.4%UK£1.20UK£0.97UK£1.535
Jul ’24UK£0.97
UK£1.07
+11.0%
7.0%UK£1.15UK£0.97UK£1.435
Jun ’24UK£0.94
UK£1.06
+11.8%
7.7%UK£1.15UK£0.96UK£1.406
May ’24UK£0.99
UK£1.05
+6.3%
7.7%UK£1.15UK£0.96UK£1.206
Apr ’24UK£1.05
UK£1.05
+0.7%
7.7%UK£1.15UK£0.96UK£1.096
Mar ’24UK£1.11
UK£1.03
-7.3%
7.8%UK£1.15UK£0.95UK£0.967
Feb ’24UK£1.18
UK£0.98
-16.4%
7.4%UK£1.15UK£0.90UK£0.937
Jan ’24UK£0.97
UK£0.98
+1.1%
7.5%UK£1.15UK£0.90UK£0.817
Dec ’23UK£0.92
UK£0.99
+7.9%
7.8%UK£1.15UK£0.90UK£0.847
Nov ’23UK£0.94
UK£1.09
+15.7%
9.0%UK£1.25UK£0.95UK£0.867

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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