Associated British Foods plc

LSE:ABF Stock Report

Mkt Cap: UK£14.5b

We’ve recently updated our valuation analysis.

Associated British Foods Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

ABF key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA8.8x
PEG Ratio1.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ABF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average20.4x
TATE Tate & Lyle
42.9x15.4%UK£3.0b
CWK Cranswick
16.6x5.6%UK£1.7b
PFD Premier Foods
10.3x3.4%UK£953.3m
BAKK Bakkavor Group
11.7x13.7%UK£677.9m
ABF Associated British Foods
20.8x11.4%UK£14.5b

Price-To-Earnings vs Peers: ABF is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the peer average (20.4x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a13.2%
n/an/an/a

Price-To-Earnings vs Industry: ABF is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the European Food industry average (15.3x)


Price to Earnings Ratio vs Fair Ratio

What is ABF'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.

ABF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.8x
Fair PE Ratio20x

Price-To-Earnings vs Fair Ratio: ABF is expensive based on its Price-To-Earnings Ratio (20.8x) compared to the estimated Fair Price-To-Earnings Ratio (20x).


Share Price vs Fair Value

What is the Fair Price of ABF when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ABF (£18.57) is trading below our estimate of fair value (£24.69)

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


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 ABF forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£18.57
UK£18.57
+0.02%
16.3%UK£24.40UK£11.75n/a17
Jan ’24UK£15.76
UK£16.50
+4.7%
15.2%UK£22.00UK£11.75n/a18
Dec ’23UK£15.88
UK£16.41
+3.4%
15.6%UK£22.00UK£11.75n/a18
Nov ’23UK£13.81
UK£16.18
+17.2%
19.1%UK£23.00UK£11.00n/a18
Oct ’23UK£12.62
UK£16.71
+32.5%
18.3%UK£23.00UK£12.35n/a18
Sep ’23UK£15.00
UK£19.86
+32.4%
13.6%UK£24.70UK£14.80n/a18
Aug ’23UK£16.65
UK£19.86
+19.3%
13.6%UK£24.70UK£14.80n/a18
Jul ’23UK£15.89
UK£19.89
+25.2%
13.5%UK£24.70UK£14.80n/a18
Jun ’23UK£17.05
UK£20.01
+17.4%
13.5%UK£24.70UK£14.00n/a18
May ’23UK£16.07
UK£21.20
+32.0%
14.6%UK£26.00UK£14.00n/a18
Apr ’23UK£16.55
UK£22.92
+38.5%
12.3%UK£27.10UK£17.65n/a19
Mar ’23UK£17.99
UK£23.96
+33.2%
10.8%UK£27.10UK£19.00n/a19
Feb ’23UK£19.56
UK£23.99
+22.7%
10.6%UK£27.10UK£19.00n/a19
Jan ’23UK£20.08
UK£24.23
+20.6%
10.0%UK£27.10UK£19.00UK£15.7619
Dec ’22UK£19.56
UK£24.28
+24.2%
11.6%UK£29.00UK£17.00UK£15.8819
Nov ’22UK£18.13
UK£24.86
+37.1%
11.6%UK£29.00UK£17.00UK£13.8118
Oct ’22UK£18.45
UK£25.58
+38.7%
10.0%UK£29.00UK£18.00UK£12.6218
Sep ’22UK£20.00
UK£26.41
+32.1%
11.5%UK£30.45UK£18.00UK£15.0019
Aug ’22UK£20.07
UK£26.04
+29.8%
14.8%UK£30.45UK£15.01UK£16.6519
Jul ’22UK£23.23
UK£26.60
+14.5%
11.0%UK£30.00UK£18.00UK£15.8919
Jun ’22UK£23.44
UK£26.12
+11.5%
12.2%UK£32.30UK£18.00UK£17.0521
May ’22UK£23.08
UK£25.61
+11.0%
13.6%UK£32.30UK£18.00UK£16.0720
Apr ’22UK£24.51
UK£25.23
+2.9%
13.4%UK£32.30UK£18.00UK£16.5520
Mar ’22UK£23.97
UK£24.21
+1.0%
14.3%UK£29.00UK£16.18UK£17.9919
Feb ’22UK£22.01
UK£23.46
+6.6%
14.7%UK£28.00UK£13.51UK£19.5620
Jan ’22UK£22.64
UK£23.07
+1.9%
15.7%UK£28.35UK£13.51UK£20.0820

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


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