Bakkavor Group plc

LSE:BAKK Stock Report

Market Cap: UK£751.9m

Bakkavor Group Valuation

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

Below Fair Value: BAKK (£1.3) is trading below our estimate of fair value (£1.87)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for BAKK. This is calculated by dividing BAKK's market cap by their current earnings.
What is BAKK's PE Ratio?
PE Ratio11.7x
EarningsUK£64.00m
Market CapUK£751.86m

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BAKK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.1x
HFG Hilton Food Group
17.5x10.5%UK£821.7m
GNC Greencore Group
16.4x10.7%UK£854.8m
PFD Premier Foods
14.6x6.3%UK£1.6b
MHPC MHP
4xn/aUS$452.8m
BAKK Bakkavor Group
11.7x11.2%UK£751.9m

Price-To-Earnings vs Peers: BAKK is good value based on its Price-To-Earnings Ratio (11.7x) compared to the peer average (13.1x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
BAKK 11.7xIndustry Avg. 13.3xNo. of Companies16PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: BAKK is good value based on its Price-To-Earnings Ratio (11.7x) compared to the European Food industry average (13.3x).

Price to Earnings Ratio vs Fair Ratio

What is BAKK'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.

BAKK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.7x
Fair PE Ratio16.7x

Price-To-Earnings vs Fair Ratio: BAKK is good value based on its Price-To-Earnings Ratio (11.7x) compared to the estimated Fair Price-To-Earnings Ratio (16.7x).

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 BAKK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.30
UK£1.73
+32.7%
3.6%UK£1.80UK£1.65n/a6
Nov ’25UK£1.48
UK£1.73
+16.9%
3.6%UK£1.80UK£1.65n/a6
Oct ’25UK£1.55
UK£1.73
+11.7%
3.6%UK£1.80UK£1.65n/a6
Sep ’25UK£1.54
UK£1.51
-1.7%
7.6%UK£1.70UK£1.38n/a6
Aug ’25UK£1.54
UK£1.48
-3.9%
5.3%UK£1.60UK£1.38n/a6
Jul ’25UK£1.42
UK£1.45
+2.2%
7.0%UK£1.60UK£1.30n/a6
Jun ’25UK£1.40
UK£1.28
-8.6%
12.3%UK£1.45UK£1.00n/a6
May ’25UK£1.21
UK£1.19
-2.0%
10.6%UK£1.35UK£1.00n/a5
Apr ’25UK£1.08
UK£1.16
+6.9%
11.6%UK£1.35UK£1.00n/a6
Mar ’25UK£0.97
UK£1.12
+15.6%
9.9%UK£1.30UK£1.00n/a6
Feb ’25UK£0.94
UK£1.12
+18.8%
9.9%UK£1.30UK£1.00n/a6
Jan ’25UK£0.81
UK£1.07
+32.6%
8.2%UK£1.20UK£0.97n/a5
Dec ’24UK£0.85
UK£1.09
+27.8%
7.8%UK£1.20UK£0.97n/a6
Nov ’24UK£0.86
UK£1.09
+25.8%
7.8%UK£1.20UK£0.97UK£1.486
Oct ’24UK£0.96
UK£1.09
+13.4%
7.8%UK£1.20UK£0.97UK£1.556
Sep ’24UK£0.98
UK£1.09
+11.9%
8.4%UK£1.20UK£0.97UK£1.545
Aug ’24UK£0.99
UK£1.09
+10.3%
8.4%UK£1.20UK£0.97UK£1.545
Jul ’24UK£0.95
UK£1.07
+13.1%
7.0%UK£1.15UK£0.97UK£1.425
Jun ’24UK£0.93
UK£1.06
+13.7%
7.7%UK£1.15UK£0.96UK£1.406
May ’24UK£0.96
UK£1.05
+10.3%
7.7%UK£1.15UK£0.96UK£1.216
Apr ’24UK£1.04
UK£1.05
+1.2%
7.7%UK£1.15UK£0.96UK£1.086
Mar ’24UK£1.12
UK£1.03
-8.0%
7.8%UK£1.15UK£0.95UK£0.977
Feb ’24UK£1.16
UK£0.98
-15.2%
7.4%UK£1.15UK£0.90UK£0.947
Jan ’24UK£0.96
UK£0.98
+1.6%
7.5%UK£1.15UK£0.90UK£0.817
Dec ’23UK£0.92
UK£0.99
+8.1%
7.8%UK£1.15UK£0.90UK£0.857
Nov ’23UK£0.93
UK£1.09
+17.0%
9.0%UK£1.25UK£0.95UK£0.867

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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