Imperial Brands PLC

BATS-CHIXE:IMBL Stock Report

Market Cap: UK£20.8b

Imperial Brands Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: IMBL (£25.09) is trading below our estimate of fair value (£73)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for IMBL. This is calculated by dividing IMBL's market cap by their current earnings.
What is IMBL's PE Ratio?
PE Ratio8x
EarningsUK£2.61b
Market CapUK£20.85b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for IMBL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18x
ABF Associated British Foods
11x4.2%UK£15.9b
CCH Coca-Cola HBC
19x11.9%UK£10.0b
DGE Diageo
17x3.9%UK£52.2b
BVIC Britvic
25.2x16.9%UK£3.2b
IMBL Imperial Brands
8x-4.8%UK£20.8b

Price-To-Earnings vs Peers: IMBL is good value based on its Price-To-Earnings Ratio (8x) compared to the peer average (18x).

Price to Earnings Ratio vs Industry

How does IMBL's PE Ratio compare vs other companies in the Global Tobacco Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
No. of Companies8PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: IMBL is good value based on its Price-To-Earnings Ratio (8x) compared to the Global Tobacco industry average (11.6x).

Price to Earnings Ratio vs Fair Ratio

What is IMBL'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.

IMBL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8x
Fair PE Ratio16.2x

Price-To-Earnings vs Fair Ratio: IMBL is good value based on its Price-To-Earnings Ratio (8x) compared to the estimated Fair Price-To-Earnings Ratio (16.2x).

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 IMBL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£25.09
UK£27.48
+9.5%
13.6%UK£36.00UK£21.00n/a10
Nov ’25UK£23.68
UK£25.60
+8.1%
15.4%UK£36.00UK£20.00n/a10
Oct ’25UK£21.63
UK£24.50
+13.2%
18.2%UK£36.00UK£20.00n/a10
Sep ’25UK£21.77
UK£23.11
+6.2%
19.4%UK£36.00UK£18.50n/a12
Aug ’25UK£21.56
UK£23.11
+7.2%
19.4%UK£36.00UK£18.50n/a12
Jul ’25UK£20.32
UK£23.11
+13.8%
19.4%UK£36.00UK£18.50n/a12
Jun ’25UK£19.37
UK£23.58
+21.8%
20.2%UK£36.00UK£18.50n/a12
May ’25UK£18.37
UK£22.78
+24.1%
22.6%UK£36.00UK£17.10n/a12
Apr ’25UK£17.75
UK£22.93
+29.2%
21.5%UK£36.00UK£18.00n/a12
Mar ’25UK£16.98
UK£22.90
+34.8%
20.7%UK£36.00UK£18.00n/a13
Feb ’25UK£18.78
UK£22.90
+21.9%
20.7%UK£36.00UK£18.00n/a13
Jan ’25UK£18.10
UK£22.81
+26.1%
20.3%UK£35.00UK£16.50n/a15
Dec ’24UK£18.55
UK£23.06
+24.3%
19.4%UK£35.00UK£16.50n/a15
Nov ’24UK£17.72
UK£23.19
+30.9%
19.3%UK£35.00UK£16.50UK£23.6815
Oct ’24UK£16.77
UK£23.42
+39.7%
18.0%UK£35.00UK£16.80UK£21.6315
Sep ’24UK£17.85
UK£23.75
+33.1%
17.3%UK£35.00UK£16.80UK£21.7716
Aug ’24UK£18.45
UK£23.75
+28.7%
17.3%UK£35.00UK£16.80UK£21.5616
Jul ’24UK£17.40
UK£23.77
+36.7%
17.2%UK£35.00UK£16.80UK£20.3216
Jun ’24UK£17.18
UK£24.36
+41.8%
14.4%UK£35.00UK£19.93UK£19.3717
May ’24UK£19.69
UK£24.45
+24.2%
14.1%UK£35.00UK£19.93UK£18.3717
Apr ’24UK£18.68
UK£24.38
+30.5%
14.1%UK£35.00UK£19.93UK£17.7517
Mar ’24UK£20.19
UK£24.38
+20.8%
14.1%UK£35.00UK£19.93UK£16.9817
Feb ’24UK£20.53
UK£24.39
+18.8%
14.1%UK£35.00UK£20.07UK£18.7817
Jan ’24UK£20.74
UK£24.29
+17.1%
12.7%UK£33.00UK£20.08UK£18.1017
Dec ’23UK£20.97
UK£24.33
+16.0%
12.8%UK£33.00UK£20.08UK£18.5517
Nov ’23UK£21.16
UK£23.47
+10.9%
15.1%UK£32.22UK£16.25UK£17.7218

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

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