Imperial Brands Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: IMB (£17.56) is trading below our estimate of fair value (£40.69)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

IMB 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/Revenue1.4x
Enterprise Value/EBITDA6.6x
PEG Ratio12x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for IMB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.1x
ABF Associated British Foods
18x8.8%UK£18.8b
CCH Coca-Cola HBC
16.9x10.3%UK£9.2b
DGE Diageo
19.4x5.0%UK£65.4b
TATE Tate & Lyle
14.3x8.8%UK£2.5b
IMB Imperial Brands
6.5x0.5%UK£15.2b

Price-To-Earnings vs Peers: IMB is good value based on its Price-To-Earnings Ratio (6.5x) compared to the peer average (17.1x).


Price to Earnings Ratio vs Industry

How does IMB's PE Ratio compare vs other companies in the Global Tobacco Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a38.4%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a38.4%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: IMB is good value based on its Price-To-Earnings Ratio (6.5x) compared to the Global Tobacco industry average (11.9x).


Price to Earnings Ratio vs Fair Ratio

What is IMB'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.

IMB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.5x
Fair PE Ratio20.3x

Price-To-Earnings vs Fair Ratio: IMB is good value based on its Price-To-Earnings Ratio (6.5x) compared to the estimated Fair Price-To-Earnings Ratio (20.3x).


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 IMB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£17.70
UK£22.93
+29.5%
21.5%UK£36.00UK£18.00n/a12
Mar ’25UK£16.98
UK£22.90
+34.9%
20.7%UK£36.00UK£18.00n/a13
Feb ’25UK£18.80
UK£22.90
+21.8%
20.7%UK£36.00UK£18.00n/a13
Jan ’25UK£18.07
UK£22.81
+26.3%
20.3%UK£35.00UK£16.50n/a15
Dec ’24UK£18.59
UK£23.06
+24.1%
19.4%UK£35.00UK£16.50n/a15
Nov ’24UK£17.69
UK£23.19
+31.1%
19.3%UK£35.00UK£16.50n/a15
Oct ’24UK£16.67
UK£23.42
+40.5%
18.0%UK£35.00UK£16.80n/a15
Sep ’24UK£17.84
UK£23.75
+33.1%
17.3%UK£35.00UK£16.80n/a16
Aug ’24UK£18.44
UK£23.75
+28.8%
17.3%UK£35.00UK£16.80n/a16
Jul ’24UK£17.39
UK£23.77
+36.7%
17.2%UK£35.00UK£16.80n/a16
Jun ’24UK£17.17
UK£24.36
+41.9%
14.4%UK£35.00UK£19.93n/a17
May ’24UK£19.68
UK£24.45
+24.3%
14.1%UK£35.00UK£19.93n/a17
Apr ’24UK£18.64
UK£24.38
+30.8%
14.1%UK£35.00UK£19.93n/a17
Mar ’24UK£20.17
UK£24.38
+20.9%
14.1%UK£35.00UK£19.93UK£16.9817
Feb ’24UK£20.50
UK£24.39
+19.0%
14.1%UK£35.00UK£20.07UK£18.8017
Jan ’24UK£20.71
UK£24.29
+17.3%
12.7%UK£33.00UK£20.08UK£18.0717
Dec ’23UK£21.06
UK£24.33
+15.5%
12.8%UK£33.00UK£20.08UK£18.5917
Nov ’23UK£21.20
UK£23.47
+10.7%
15.1%UK£32.22UK£16.25UK£17.6918
Oct ’23UK£18.55
UK£23.34
+25.8%
15.8%UK£32.22UK£16.25UK£16.6717
Sep ’23UK£18.95
UK£23.02
+21.5%
16.2%UK£32.22UK£16.25UK£17.8417
Aug ’23UK£18.12
UK£22.32
+23.2%
17.3%UK£32.22UK£16.25UK£18.4417
Jul ’23UK£18.36
UK£22.26
+21.3%
17.4%UK£32.22UK£16.25UK£17.3917
Jun ’23UK£17.92
UK£21.58
+20.4%
13.8%UK£29.00UK£16.25UK£17.1717
May ’23UK£16.66
UK£20.13
+20.8%
16.7%UK£29.00UK£16.25UK£19.6817
Apr ’23UK£16.21
UK£20.14
+24.2%
17.1%UK£29.00UK£15.95UK£18.6417
Mar ’23UK£16.42
UK£20.29
+23.6%
17.2%UK£29.00UK£16.00UK£20.1717

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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