We’ve recently updated our valuation analysis.

Sally Beauty Holdings Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 SBH?

Other financial metrics that can be useful for relative valuation.

SBH 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/Revenue0.9x
Enterprise Value/EBITDA7.5x
PEG Ratio1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SBH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average28.3x
ODP ODP
13.8x3.1%US$2.4b
WINA Winmark
23.5xn/aUS$960.9m
EYE National Vision Holdings
58.6x26.5%US$3.4b
LESL Leslie's
17.3x7.1%US$2.7b
SBH Sally Beauty Holdings
11.4x11.9%US$1.9b

Price-To-Earnings vs Peers: SBH is good value based on its Price-To-Earnings Ratio (11.4x) compared to the peer average (28.3x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a11.5%
n/an/an/a

Price-To-Earnings vs Industry: SBH is expensive based on its Price-To-Earnings Ratio (11.4x) compared to the US Specialty Retail industry average (10.2x)


Price to Earnings Ratio vs Fair Ratio

What is SBH'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.

SBH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.4x
Fair PE Ratio11.1x

Price-To-Earnings vs Fair Ratio: SBH is expensive based on its Price-To-Earnings Ratio (11.4x) compared to the estimated Fair Price-To-Earnings Ratio (11.1x).


Share Price vs Fair Value

What is the Fair Price of SBH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SBH ($17.63) is trading below our estimate of fair value ($22.45)

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


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 SBH forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$17.63
US$13.50
-23.4%
11.0%US$15.00US$11.50n/a5
Jan ’24US$12.52
US$12.70
+1.4%
14.0%US$15.00US$10.00n/a5
Dec ’23US$11.33
US$12.13
+7.0%
12.5%US$14.00US$10.00n/a4
Nov ’23US$12.91
US$13.13
+1.7%
10.2%US$14.50US$11.00n/a4
Oct ’23US$12.60
US$14.38
+14.1%
15.0%US$17.00US$11.00n/a4
Sep ’23US$14.80
US$14.38
-2.9%
15.0%US$17.00US$11.00n/a4
Aug ’23US$13.63
US$15.75
+15.6%
18.2%US$20.00US$12.00n/a4
Jul ’23US$12.13
US$16.00
+31.9%
17.7%US$20.00US$12.00n/a4
Jun ’23US$14.74
US$17.75
+20.4%
10.1%US$20.00US$16.00n/a4
May ’23US$15.12
US$21.70
+43.5%
20.1%US$30.00US$18.00n/a5
Apr ’23US$15.48
US$22.50
+45.3%
18.4%US$30.00US$19.00n/a5
Mar ’23US$16.67
US$22.50
+35.0%
18.4%US$30.00US$19.00n/a5
Feb ’23US$17.40
US$23.60
+35.6%
15.3%US$30.00US$19.00US$16.165
Jan ’23US$18.46
US$24.40
+32.2%
11.8%US$30.00US$22.00US$12.525
Dec ’22US$18.66
US$24.17
+29.5%
11.1%US$30.00US$22.00US$11.336
Nov ’22US$16.10
US$24.33
+51.1%
11.3%US$30.00US$22.00US$12.916
Oct ’22US$17.09
US$24.33
+42.4%
11.3%US$30.00US$22.00US$12.606
Sep ’22US$18.53
US$24.33
+31.3%
11.3%US$30.00US$22.00US$14.806
Aug ’22US$18.92
US$24.33
+28.6%
11.3%US$30.00US$22.00US$13.636
Jul ’22US$22.44
US$25.50
+13.6%
8.7%US$30.00US$23.00US$12.136
Jun ’22US$22.44
US$25.40
+13.2%
6.4%US$28.00US$23.00US$14.745
May ’22US$20.07
US$15.00
-25.3%
11.2%US$18.00US$13.00US$15.125
Apr ’22US$20.18
US$15.00
-25.7%
11.2%US$18.00US$13.00US$15.485
Mar ’22US$17.70
US$15.50
-12.4%
12.2%US$18.00US$13.00US$16.676
Feb ’22US$15.83
US$13.57
-14.3%
16.6%US$18.00US$11.00US$17.407

Analyst Forecast: Target price is lower than the current share price.


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