Nestlé S.A.

LSE:0QR4 Stock Report

Market Cap: CHF 225.4b

Nestlé Valuation

Is 0QR4 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • 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 0QR4 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
CHF 144.41
Fair Value
39.3% undervalued intrinsic discount
23
Number of Analysts

Below Fair Value: 0QR4 (CHF87.6) is trading below our estimate of fair value (CHF144.41)

Significantly Below Fair Value: 0QR4 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0QR4?

Key metric: As 0QR4 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0QR4. This is calculated by dividing 0QR4's market cap by their current earnings.
What is 0QR4's PE Ratio?
PE Ratio20.7x
EarningsCHF 10.88b
Market CapCHF 225.37b

Price to Earnings Ratio vs Peers

How does 0QR4's PE Ratio compare to its peers?

The above table shows the PE ratio for 0QR4 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.6x
ABF Associated British Foods
10.1x4.8%UK£14.7b
CWK Cranswick
24.5x8.8%UK£2.8b
TATE Tate & Lyle
15.9x12.3%UK£2.5b
PFD Premier Foods
15.9x6.6%UK£1.7b
0QR4 Nestlé
20.7x5.1%CHF 225.4b

Price-To-Earnings vs Peers: 0QR4 is expensive based on its Price-To-Earnings Ratio (20.7x) compared to the peer average (16.6x).

Price to Earnings Ratio vs Industry

How does 0QR4's PE Ratio compare vs other companies in the European Food Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0QR4 20.7xIndustry Avg. 15.2xNo. of Companies20PE01020304050+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0QR4 is expensive based on its Price-To-Earnings Ratio (20.7x) compared to the European Food industry average (15.2x).

Price to Earnings Ratio vs Fair Ratio

What is 0QR4'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.

0QR4 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.7x
Fair PE Ratio24.3x

Price-To-Earnings vs Fair Ratio: 0QR4 is good value based on its Price-To-Earnings Ratio (20.7x) compared to the estimated Fair Price-To-Earnings Ratio (24.3x).

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 0QR4 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCHF 87.60
CHF 89.87
+2.6%
10.1%CHF 104.00CHF 73.00n/a23
Apr ’26CHF 90.30
CHF 90.57
+0.3%
10.7%CHF 104.00CHF 73.00n/a23
Mar ’26CHF 87.30
CHF 89.17
+2.2%
10.7%CHF 103.00CHF 67.00n/a23
Feb ’26CHF 77.68
CHF 88.17
+13.5%
11.1%CHF 104.00CHF 67.00n/a23
Jan ’26CHF 74.77
CHF 89.63
+19.9%
8.8%CHF 102.00CHF 76.00n/a24
Dec ’25CHF 76.30
CHF 90.48
+18.6%
9.3%CHF 110.00CHF 76.00n/a23
Nov ’25CHF 82.23
CHF 92.83
+12.9%
9.4%CHF 111.00CHF 80.00n/a23
Oct ’25CHF 85.01
CHF 97.28
+14.4%
8.2%CHF 114.00CHF 84.00n/a23
Sep ’25CHF 91.19
CHF 99.87
+9.5%
8.6%CHF 120.00CHF 87.00n/a23
Aug ’25CHF 89.14
CHF 100.61
+12.9%
8.6%CHF 120.00CHF 87.00n/a23
Jul ’25CHF 92.46
CHF 106.04
+14.7%
9.3%CHF 123.00CHF 86.00n/a23
Jun ’25CHF 95.60
CHF 107.48
+12.4%
8.7%CHF 123.00CHF 86.00n/a23
May ’25CHF 92.20
CHF 108.33
+17.5%
9.2%CHF 124.00CHF 84.50CHF 87.2023
Apr ’25CHF 95.46
CHF 108.80
+14.0%
8.9%CHF 124.00CHF 84.50CHF 90.3023
Mar ’25CHF 92.20
CHF 108.50
+17.7%
8.7%CHF 124.00CHF 86.00CHF 87.3024
Feb ’25CHF 98.27
CHF 112.31
+14.3%
10.2%CHF 126.00CHF 86.00CHF 77.6824
Jan ’25CHF 97.50
CHF 113.00
+15.9%
9.8%CHF 127.00CHF 86.00CHF 74.7724
Dec ’24CHF 98.83
CHF 115.38
+16.7%
8.4%CHF 130.00CHF 97.00CHF 76.3024
Nov ’24CHF 99.50
CHF 116.65
+17.2%
8.1%CHF 130.00CHF 97.00CHF 82.2323
Oct ’24CHF 103.96
CHF 119.00
+14.5%
9.1%CHF 135.00CHF 97.00CHF 85.0123
Sep ’24CHF 105.46
CHF 120.06
+13.8%
8.0%CHF 135.00CHF 97.00CHF 91.1925
Aug ’24CHF 106.99
CHF 120.02
+12.2%
8.3%CHF 135.00CHF 97.00CHF 89.1424
Jul ’24CHF 107.69
CHF 121.14
+12.5%
8.0%CHF 135.00CHF 98.00CHF 92.4624
Jun ’24CHF 108.83
CHF 121.83
+11.9%
7.8%CHF 135.00CHF 98.00CHF 95.6024
May ’24CHF 114.57
CHF 121.29
+5.9%
8.3%CHF 135.00CHF 95.00CHF 92.2024
AnalystConsensusTarget
Consensus Narrative from 23 Analysts
CHF 89.87
Fair Value
2.5% undervalued intrinsic discount
23
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/05/05 14:33
End of Day Share Price 2025/05/02 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Nestlé S.A. is covered by 64 analysts. 17 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jean-Marie L’HomeAurel BGC
Andreas von ArxBaader Helvea Equity Research
Miguel Angel GilBanco Santander