H & M Hennes & Mauritz AB (publ)

BATS-CHIXE:HMBS Stock Report

Market Cap: SEK 246.6b

H & M Hennes & Mauritz Valuation

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: HMBS (SEK153.68) is trading above our estimate of fair value (SEK95.91)

Significantly Below Fair Value: HMBS is trading above our estimate of fair value.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for HMBS. This is calculated by dividing HMBS's market cap by their current earnings.
What is HMBS's PE Ratio?
PE Ratio24.4x
EarningsSEK 10.12b
Market CapSEK 246.56b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for HMBS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average30x
JD. JD Sports Fashion
17.7x24.5%UK£6.0b
BWNG N Brown Group
73.2xn/aUK£183.1m
NXT NEXT
14x2.4%UK£11.2b
KGF Kingfisher
15x13.5%UK£5.2b
HMBS H & M Hennes & Mauritz
24.4x16.9%SEK 246.6b

Price-To-Earnings vs Peers: HMBS is good value based on its Price-To-Earnings Ratio (24.4x) compared to the peer average (29.9x).

Price to Earnings Ratio vs Industry

How does HMBS's PE Ratio compare vs other companies in the GB Specialty Retail Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
WRKS TheWorks.co.uk
2.2xn/aUS$18.68m
No more companies available in this PE range
No. of Companies4PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HMBS is expensive based on its Price-To-Earnings Ratio (24.4x) compared to the UK Specialty Retail industry average (17x).

Price to Earnings Ratio vs Fair Ratio

What is HMBS'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.

HMBS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate HMBS's Price-To-Earnings Fair Ratio for valuation analysis.

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 HMBS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentSEK 153.68
SEK 167.95
+9.3%
14.4%SEK 200.00SEK 120.00n/a28
Nov ’25SEK 166.85
SEK 168.31
+0.9%
14.6%SEK 200.00SEK 120.00n/a28
Oct ’25SEK 172.80
SEK 169.91
-1.7%
13.6%SEK 200.00SEK 120.00n/a28
Sep ’25SEK 162.43
SEK 171.22
+5.4%
14.5%SEK 210.00SEK 120.00n/a26
Aug ’25SEK 165.43
SEK 176.22
+6.5%
15.2%SEK 210.00SEK 120.00n/a26
Jul ’25SEK 166.75
SEK 174.87
+4.9%
15.1%SEK 210.00SEK 120.00n/a26
Jun ’25SEK 184.75
SEK 170.92
-7.5%
16.2%SEK 220.00SEK 120.00n/a25
May ’25SEK 176.48
SEK 167.89
-4.9%
15.2%SEK 210.00SEK 120.00n/a26
Apr ’25SEK 176.76
SEK 165.19
-6.5%
16.3%SEK 210.00SEK 120.00n/a27
Mar ’25SEK 140.62
SEK 157.42
+11.9%
14.2%SEK 200.00SEK 114.00n/a28
Feb ’25SEK 144.37
SEK 164.26
+13.8%
14.4%SEK 200.00SEK 114.00n/a28
Jan ’25n/a
SEK 173.90
0%
12.6%SEK 210.00SEK 123.00n/a28
Dec ’24SEK 168.12
SEK 173.59
+3.3%
13.1%SEK 210.00SEK 123.00n/a28
Nov ’24SEK 153.76
SEK 172.05
+11.9%
12.9%SEK 210.00SEK 123.00SEK 166.8527
Oct ’24n/a
SEK 172.52
0%
13.1%SEK 210.00SEK 123.00SEK 172.8026
Sep ’24SEK 160.30
SEK 173.84
+8.4%
17.0%SEK 220.00SEK 116.90SEK 162.4326
Aug ’24SEK 172.94
SEK 173.07
+0.08%
17.5%SEK 220.00SEK 116.90SEK 165.4326
Jul ’24SEK 184.82
SEK 163.69
-11.4%
18.8%SEK 215.00SEK 110.00SEK 166.7526
Jun ’24SEK 139.19
SEK 143.37
+3.0%
17.5%SEK 185.00SEK 97.00SEK 184.7524
May ’24SEK 149.58
SEK 140.08
-6.4%
19.7%SEK 185.00SEK 85.00SEK 176.4825
Apr ’24SEK 147.22
SEK 134.60
-8.6%
21.0%SEK 185.00SEK 85.00SEK 176.7625
Mar ’24SEK 126.33
SEK 121.32
-4.0%
21.0%SEK 179.00SEK 75.00SEK 140.6225
Feb ’24SEK 128.46
SEK 117.08
-8.9%
21.2%SEK 179.00SEK 75.00SEK 144.3725
Jan ’24SEK 113.62
SEK 112.08
-1.4%
25.5%SEK 190.00SEK 70.00n/a25
Dec ’23SEK 117.94
SEK 110.92
-6.0%
21.2%SEK 179.00SEK 85.00SEK 168.1225
Nov ’23SEK 114.80
SEK 110.42
-3.8%
20.8%SEK 179.00SEK 85.00SEK 153.7625

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

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