Associated British Foods plc

LSE:ABF Stock Report

Market Cap: UK£15.3b

Associated British Foods Valuation

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

Below Fair Value: ABF (£20.9) is trading below our estimate of fair value (£27.93)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ABF. This is calculated by dividing ABF's market cap by their current earnings.
What is ABF's PE Ratio?
PE Ratio10.5x
EarningsUK£1.46b
Market CapUK£15.33b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average19.2x
TATE Tate & Lyle
19.8x20.1%UK£3.1b
CWK Cranswick
23x8.2%UK£2.7b
PFD Premier Foods
15.1x6.5%UK£1.6b
GNC Greencore Group
19.1x9.4%UK£883.0m
ABF Associated British Foods
10.5x5.8%UK£15.3b

Price-To-Earnings vs Peers: ABF is good value based on its Price-To-Earnings Ratio (10.5x) compared to the peer average (19.2x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ABF 10.5xIndustry Avg. 13.4xNo. of Companies20PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ABF is good value based on its Price-To-Earnings Ratio (10.5x) compared to the European Food industry average (13.3x).

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 Ratio10.5x
Fair PE Ratio19.3x

Price-To-Earnings vs Fair Ratio: ABF is good value based on its Price-To-Earnings Ratio (10.5x) compared to the estimated Fair Price-To-Earnings Ratio (19.3x).

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 ABF forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£20.90
UK£25.68
+22.9%
10.7%UK£31.20UK£19.79n/a17
Dec ’25UK£21.98
UK£25.84
+17.6%
11.8%UK£31.20UK£19.79n/a17
Nov ’25UK£22.83
UK£25.80
+13.0%
12.0%UK£31.20UK£19.79n/a17
Oct ’25UK£23.17
UK£25.66
+10.7%
11.9%UK£31.20UK£19.79n/a18
Sep ’25UK£24.90
UK£26.67
+7.1%
12.6%UK£34.00UK£19.79n/a18
Aug ’25UK£24.87
UK£26.86
+8.0%
12.3%UK£34.00UK£19.79n/a18
Jul ’25UK£24.96
UK£26.86
+7.6%
12.3%UK£34.00UK£19.79n/a18
Jun ’25UK£25.50
UK£26.83
+5.2%
12.2%UK£34.00UK£19.79n/a18
May ’25UK£26.36
UK£26.33
-0.1%
13.3%UK£34.00UK£19.79n/a18
Apr ’25UK£24.98
UK£24.51
-1.9%
13.4%UK£32.00UK£19.79n/a19
Mar ’25UK£22.69
UK£24.56
+8.3%
13.1%UK£32.00UK£19.79n/a20
Feb ’25UK£22.81
UK£24.42
+7.1%
13.3%UK£32.00UK£19.79n/a20
Jan ’25UK£23.67
UK£23.69
+0.09%
13.5%UK£31.00UK£17.50n/a20
Dec ’24UK£23.85
UK£23.62
-1.0%
13.0%UK£30.00UK£17.50UK£21.9820
Nov ’24UK£20.78
UK£22.57
+8.6%
10.2%UK£28.00UK£17.50UK£22.8320
Oct ’24UK£20.68
UK£22.55
+9.1%
10.3%UK£28.00UK£17.50UK£23.1720
Sep ’24UK£19.85
UK£21.63
+9.0%
11.4%UK£25.00UK£16.00UK£24.9020
Aug ’24UK£20.30
UK£21.58
+6.3%
11.6%UK£25.00UK£16.00UK£24.8720
Jul ’24UK£19.91
UK£21.53
+8.1%
11.4%UK£25.00UK£16.00UK£24.9620
Jun ’24UK£18.28
UK£20.98
+14.8%
12.3%UK£25.30UK£14.50UK£25.5018
May ’24UK£19.56
UK£20.92
+7.0%
12.2%UK£25.30UK£14.50UK£26.3618
Apr ’24UK£19.40
UK£20.85
+7.4%
12.5%UK£25.30UK£14.50UK£24.9818
Mar ’24UK£20.15
UK£20.75
+3.0%
13.2%UK£25.30UK£14.50UK£22.6917
Feb ’24UK£18.75
UK£18.73
-0.1%
16.6%UK£24.40UK£11.75UK£22.8117
Jan ’24UK£15.76
UK£16.50
+4.7%
15.2%UK£22.00UK£11.75UK£23.6718
Dec ’23UK£15.88
UK£16.41
+3.4%
15.6%UK£22.00UK£11.75UK£23.8518

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/18 09:52
End of Day Share Price 2024/12/18 00:00
Earnings2024/09/14
Annual Earnings2024/09/14

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 here.

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 .

Analyst Sources

Associated British Foods plc is covered by 44 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Rebecca McClellanBanco Santander
Alexandra OldroydBarclays
Nicolas CeronBarclays