H & M Hennes & Mauritz AB (publ)

OM:HM B Stock Report

Mkt Cap: kr223.8b

We’ve recently updated our valuation analysis.

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

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

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/Revenue1.2x
Enterprise Value/EBITDA17.6x
PEG Ratio2.4x

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.
CompanyPEEstimated GrowthMarket Cap
Peer Average15x
RVRC RVRC Holding
14x26.2%kr3.4b
ROST Ross Stores
22.9x9.7%US$35.4b
BILI A Bilia
7.5xn/akr9.6b
FOI B Fenix Outdoor International
15.7x16.0%kr10.7b
HM B H & M Hennes & Mauritz
57.5x24.4%kr223.8b

Price-To-Earnings vs Peers: HM B is expensive based on its Price-To-Earnings Ratio (57.5x) compared to the peer average (15x).

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/a25.9%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a25.9%
 n/an/an/a
No more companies

Price-To-Earnings vs Industry: HM B is expensive based on its Price-To-Earnings Ratio (57.5x) compared to the European Specialty Retail industry average (13.3x)

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 Ratio57.5x
Fair PE Ratio36.4x

Price-To-Earnings vs Fair Ratio: HM B is expensive based on its Price-To-Earnings Ratio (57.5x) compared to the estimated Fair Price-To-Earnings Ratio (36.4x).

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 (SEK137.34) is trading above our estimate of fair value (SEK123.7)

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

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
Currentkr137.34
kr143.16
+4.2%
17.6%kr185.00kr97.00n/a24
May ’24kr149.88
kr140.08
-6.5%
19.7%kr185.00kr85.00n/a25
Apr ’24kr147.82
kr134.60
-8.9%
21.0%kr185.00kr85.00n/a25
Mar ’24kr130.90
kr121.32
-7.3%
21.0%kr179.00kr75.00n/a25
Feb ’24kr130.34
kr117.08
-10.2%
21.2%kr179.00kr75.00n/a25
Jan ’24kr112.24
kr112.08
-0.1%
25.5%kr190.00kr70.00n/a25
Dec ’23kr117.60
kr110.92
-5.7%
21.2%kr179.00kr85.00n/a25
Nov ’23kr113.92
kr110.42
-3.1%
20.8%kr179.00kr85.00n/a25
Oct ’23kr103.46
kr113.82
+10.0%
19.3%kr179.00kr85.00n/a25
Sep ’23kr110.14
kr139.42
+26.6%
21.9%kr212.00kr105.00n/a25
Aug ’23kr127.46
kr144.74
+13.6%
19.8%kr212.00kr106.00n/a25
Jul ’23kr124.16
kr151.48
+22.0%
21.5%kr226.00kr110.00n/a26
Jun ’23kr135.18
kr153.47
+13.5%
20.5%kr226.00kr105.00n/a26
May ’23kr125.18
kr159.17
+27.1%
20.6%kr226.00kr105.00kr149.8826
Apr ’23kr130.58
kr164.37
+25.9%
19.5%kr226.00kr105.00kr147.8225
Mar ’23kr152.64
kr197.32
+29.3%
16.1%kr255.00kr148.00kr130.9026
Feb ’23kr180.82
kr197.71
+9.3%
15.8%kr255.00kr145.00kr130.3427
Jan ’23kr178.08
kr196.86
+10.5%
16.9%kr250.00kr140.00kr112.2427
Dec ’22kr167.24
kr198.85
+18.9%
17.6%kr258.00kr140.00kr117.6025
Nov ’22kr165.10
kr201.65
+22.1%
16.8%kr258.00kr140.00kr113.9225
Oct ’22kr180.66
kr206.30
+14.2%
14.4%kr258.00kr150.00kr103.4624
Sep ’22kr180.32
kr213.26
+18.3%
13.4%kr265.00kr150.00kr110.1424
Aug ’22kr180.12
kr216.49
+20.2%
12.2%kr265.00kr163.00kr127.4623
Jul ’22kr200.80
kr216.00
+7.6%
12.2%kr260.00kr160.00kr124.1623
Jun ’22kr212.40
kr207.88
-2.1%
16.9%kr260.00kr95.00kr135.1824
May ’22kr208.80
kr206.21
-1.2%
16.6%kr260.00kr95.00kr125.1824

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

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