Davide Campari-Milano N.V.

LSE:0ROY Stock Report

Market Cap: €6.8b

Davide Campari-Milano Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: 0ROY (€5.7) is trading below our estimate of fair value (€7.67)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for 0ROY. This is calculated by dividing 0ROY's market cap by their current earnings.
What is 0ROY's PE Ratio?
PE Ratio22.4x
Earnings€308.30m
Market Cap€6.79b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for 0ROY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.8x
DGE Diageo
17.1x3.9%UK£52.3b
BVIC Britvic
25.2x17.4%UK£3.2b
CCH Coca-Cola HBC
19.6x11.9%UK£10.3b
TATE Tate & Lyle
21.1x19.3%UK£3.3b
0ROY Davide Campari-Milano
22.4x15.7%€6.9b

Price-To-Earnings vs Peers: 0ROY is expensive based on its Price-To-Earnings Ratio (22.4x) compared to the peer average (20.8x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
0ROY 22.4xIndustry Avg. 17.0xNo. of Companies7PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0ROY is expensive based on its Price-To-Earnings Ratio (22.4x) compared to the European Beverage industry average (17x).

Price to Earnings Ratio vs Fair Ratio

What is 0ROY'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.

0ROY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.4x
Fair PE Ratio21.7x

Price-To-Earnings vs Fair Ratio: 0ROY is expensive based on its Price-To-Earnings Ratio (22.4x) compared to the estimated Fair Price-To-Earnings Ratio (21.8x).

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 0ROY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€5.70
€8.05
+41.3%
17.4%€10.80€5.00n/a21
Nov ’25€6.21
€8.19
+32.0%
15.5%€10.80€6.00n/a21
Oct ’25€7.60
€9.54
+25.5%
13.2%€12.00€6.50n/a21
Sep ’25€8.34
€9.64
+15.6%
12.0%€12.00€7.70n/a21
Aug ’25€8.15
€9.71
+19.1%
12.5%€12.00€7.70n/a20
Jul ’25€8.68
€10.30
+18.6%
13.3%€12.80€7.80n/a20
Jun ’25€9.17
€10.30
+12.3%
13.3%€12.80€7.80n/a20
May ’25€9.42
€10.28
+9.1%
13.8%€13.50€7.80n/a20
Apr ’25€9.31
€10.33
+10.9%
11.7%€12.20€7.80n/a20
Mar ’25€9.46
€10.52
+11.2%
13.0%€13.50€7.80n/a21
Feb ’25€9.40
€10.84
+15.4%
13.0%€13.50€8.20n/a21
Jan ’25€10.22
€11.36
+11.2%
13.0%€13.50€8.30n/a21
Dec ’24€10.01
€11.45
+14.3%
12.7%€13.50€8.30n/a21
Nov ’24€10.37
€11.61
+11.9%
10.8%€13.50€8.75€6.2121
Oct ’24€11.18
€12.30
+10.0%
13.6%€14.30€8.10€7.6021
Sep ’24€12.02
€12.25
+1.9%
13.7%€14.30€8.10€8.3422
Aug ’24€12.31
€12.27
-0.4%
13.8%€14.30€8.10€8.1522
Jul ’24€12.68
€12.46
-1.8%
11.5%€14.30€9.00€8.6820
Jun ’24€12.48
€12.46
-0.2%
11.5%€14.30€9.00€9.1720
May ’24€11.61
€11.73
+1.0%
12.3%€14.00€8.30€9.4220
Apr ’24€11.25
€11.64
+3.5%
12.1%€14.00€8.20€9.3120
Mar ’24€10.47
€11.67
+11.4%
12.1%€14.00€8.20€9.4621
Feb ’24€9.88
€11.36
+15.0%
13.5%€14.00€8.00€9.4021
Jan ’24€9.57
€11.44
+19.6%
13.2%€15.00€8.00€10.2221
Dec ’23€10.08
€11.40
+13.2%
13.5%€15.00€8.00€10.0121
Nov ’23€9.27
€11.52
+24.3%
13.7%€15.00€8.00€10.3721

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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