H & M Hennes & Mauritz AB (publ)

OM:HM B Stock Report

Market Cap: SEK 242.1b

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

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

Below Fair Value: HM B (SEK150.9) is trading above our estimate of fair value (SEK94.81)

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?

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

The above table shows the Price to Earnings ratio for HM B. This is calculated by dividing HM B's market cap by their current earnings.
What is HM B's PE Ratio?
PE Ratio23.9x
EarningsSEK 10.12b
Market CapSEK 242.12b

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 Average20.9x
RVRC RVRC Holding
14.9x14.1%SEK 4.5b
NELLY Nelly Group
12.5xn/aSEK 836.2m
BURL Burlington Stores
38.1x19.2%US$17.7b
CLAS B Clas Ohlson
18.2x5.7%SEK 13.4b
HM B H & M Hennes & Mauritz
23.9x15.0%SEK 242.1b

Price-To-Earnings vs Peers: HM B is expensive based on its Price-To-Earnings Ratio (23.9x) compared to the peer average (20.9x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HM B 23.9xIndustry Avg. 15.5xNo. of Companies11PE01020304050+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HM B is expensive based on its Price-To-Earnings Ratio (23.9x) compared to the European Specialty Retail industry average (15.5x).

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 Ratio23.9x
Fair PE Ratio29.1x

Price-To-Earnings vs Fair Ratio: HM B is good value based on its Price-To-Earnings Ratio (23.9x) compared to the estimated Fair Price-To-Earnings Ratio (29.1x).

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 150.90
SEK 164.39
+8.9%
14.1%SEK 200.00SEK 120.00n/a28
Dec ’25SEK 151.25
SEK 166.16
+9.9%
14.3%SEK 200.00SEK 120.00n/a28
Nov ’25SEK 159.50
SEK 168.31
+5.5%
14.6%SEK 200.00SEK 120.00n/a28
Oct ’25SEK 170.80
SEK 169.91
-0.5%
13.6%SEK 200.00SEK 120.00n/a28
Sep ’25SEK 162.50
SEK 171.22
+5.4%
14.5%SEK 210.00SEK 120.00n/a26
Aug ’25SEK 165.40
SEK 176.22
+6.5%
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 123.00SEK 151.2528
Nov ’24SEK 153.04
SEK 172.05
+12.4%
12.9%SEK 210.00SEK 123.00SEK 159.5027
Oct ’24SEK 155.46
SEK 172.52
+11.0%
13.1%SEK 210.00SEK 123.00SEK 170.8026
Sep ’24SEK 168.04
SEK 173.84
+3.5%
17.0%SEK 220.00SEK 116.90SEK 162.5026
Aug ’24SEK 173.24
SEK 173.07
-0.1%
17.5%SEK 220.00SEK 116.90SEK 165.4026
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 01:18
End of Day Share Price 2024/12/20 00:00
Earnings2024/08/31
Annual Earnings2023/11/30

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

H & M Hennes & Mauritz AB (publ) is covered by 76 analysts. 26 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Andreas LundbergABG Sundal Collier
Pierre-Yves GauthierAlphaValue
José RitoBanco BPI, S.A.