H & M Hennes & Mauritz AB (publ)

OM:HM B Stock Report

Market Cap: SEK 269.2b

H & M Hennes & Mauritz Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: HM B (SEK166.1) is trading above our estimate of fair value (SEK162.3)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

HM B 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/EBITDA12.8x
PEG Ratio1.8x

Price to Earnings Ratio vs Peers

How does HM B's PE Ratio compare to its peers?

The above table shows the PE ratio for HM B vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.5x
RVRC RVRC Holding
16.6x16.2%SEK 5.0b
NELLY Nelly Group
15.6xn/aSEK 834.7m
BURL Burlington Stores
41.8x18.9%US$15.9b
ROST Ross Stores
24.1x7.4%US$48.3b
HM B H & M Hennes & Mauritz
24x13.2%SEK 267.5b

Price-To-Earnings vs Peers: HM B is good value based on its Price-To-Earnings Ratio (24x) compared to the peer average (24.5x).


Price to Earnings Ratio vs Industry

How does HM B's PE Ratio compare vs other companies in the European Specialty Retail Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a16.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: HM B is expensive based on its Price-To-Earnings Ratio (24x) compared to the European Specialty Retail industry average (16.8x).


Price to Earnings Ratio vs Fair Ratio

What is HM B'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.

HM B PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.2x
Fair PE Ratio31x

Price-To-Earnings vs Fair Ratio: HM B is good value based on its Price-To-Earnings Ratio (24x) compared to the estimated Fair Price-To-Earnings Ratio (31x).


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 HM B forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentSEK 166.10
SEK 176.22
+6.1%
15.2%SEK 210.00SEK 120.00n/a26
Jul ’25SEK 167.45
SEK 174.87
+4.4%
15.1%SEK 210.00SEK 120.00n/a26
Jun ’25SEK 185.60
SEK 170.92
-7.9%
16.2%SEK 220.00SEK 120.00n/a25
May ’25SEK 176.75
SEK 167.89
-5.0%
15.2%SEK 210.00SEK 120.00n/a26
Apr ’25SEK 174.58
SEK 165.19
-5.4%
16.3%SEK 210.00SEK 120.00n/a27
Mar ’25SEK 141.08
SEK 157.42
+11.6%
14.2%SEK 200.00SEK 114.00n/a28
Feb ’25SEK 143.94
SEK 164.26
+14.1%
14.4%SEK 200.00SEK 114.00n/a28
Jan ’25SEK 176.62
SEK 173.90
-1.5%
12.6%SEK 210.00SEK 123.00n/a28
Dec ’24SEK 172.00
SEK 173.59
+0.9%
13.1%SEK 210.00SEK 123.00n/a28
Nov ’24SEK 153.04
SEK 172.05
+12.4%
12.9%SEK 210.00SEK 123.00n/a27
Oct ’24SEK 155.46
SEK 172.52
+11.0%
13.1%SEK 210.00SEK 123.00n/a26
Sep ’24SEK 168.04
SEK 173.84
+3.5%
17.0%SEK 220.00SEK 116.90n/a26
Aug ’24SEK 173.24
SEK 173.07
-0.1%
17.5%SEK 220.00SEK 116.90n/a26
Jul ’24SEK 185.18
SEK 163.69
-11.6%
18.8%SEK 215.00SEK 110.00SEK 167.4526
Jun ’24SEK 139.06
SEK 143.37
+3.1%
17.5%SEK 185.00SEK 97.00SEK 185.6024
May ’24SEK 149.88
SEK 140.08
-6.5%
19.7%SEK 185.00SEK 85.00SEK 176.7525
Apr ’24SEK 147.82
SEK 134.60
-8.9%
21.0%SEK 185.00SEK 85.00SEK 174.5825
Mar ’24SEK 130.90
SEK 121.32
-7.3%
21.0%SEK 179.00SEK 75.00SEK 141.0825
Feb ’24SEK 130.34
SEK 117.08
-10.2%
21.2%SEK 179.00SEK 75.00SEK 143.9425
Jan ’24SEK 112.24
SEK 112.08
-0.1%
25.5%SEK 190.00SEK 70.00SEK 176.6225
Dec ’23SEK 117.60
SEK 110.92
-5.7%
21.2%SEK 179.00SEK 85.00SEK 172.0025
Nov ’23SEK 113.92
SEK 110.42
-3.1%
20.8%SEK 179.00SEK 85.00SEK 153.0425
Oct ’23SEK 103.46
SEK 113.82
+10.0%
19.3%SEK 179.00SEK 85.00SEK 155.4625
Sep ’23SEK 110.14
SEK 139.42
+26.6%
21.9%SEK 212.00SEK 105.00SEK 168.0425
Aug ’23SEK 127.46
SEK 144.74
+13.6%
19.8%SEK 212.00SEK 106.00SEK 173.2425
Jul ’23SEK 124.16
SEK 151.48
+22.0%
21.5%SEK 226.00SEK 110.00SEK 185.1826

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


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