Sally Beauty Holdings, Inc.

NYSE:SBH Stock Report

Market Cap: US$1.1b

Sally Beauty Holdings Valuation

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

Valuation Score

6/6

Valuation Score 6/6

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

Below Fair Value: SBH ($10) is trading below our estimate of fair value ($18.71)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SBH. This is calculated by dividing SBH's market cap by their current earnings.
What is SBH's PE Ratio?
PE Ratio6.6x
EarningsUS$153.41m
Market CapUS$1.10b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.8x
WINA Winmark
34.5x8.4%US$1.4b
UPBD Upbound Group
19.4x28.9%US$1.6b
ODP ODP
25.2x47.2%US$690.3m
HZO MarineMax
16.2x31.0%US$627.5m
SBH Sally Beauty Holdings
6.6x9.4%US$1.1b

Price-To-Earnings vs Peers: SBH is good value based on its Price-To-Earnings Ratio (6.6x) compared to the peer average (23.8x).

Price to Earnings Ratio vs Industry

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

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TKLF Tokyo Lifestyle
2.2xn/aUS$15.83m
SSOK Sunstock
1xn/aUS$756.28k
MASN Maison Luxe
0.09xn/aUS$192.03k
EXPR.Q Express
0.000002xn/aUS$9.74k
SBH 6.6xIndustry Avg. 16.4xNo. of Companies11PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SBH is good value based on its Price-To-Earnings Ratio (6.6x) compared to the US Specialty Retail industry average (16.5x).

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 Ratio6.6x
Fair PE Ratio13.8x

Price-To-Earnings vs Fair Ratio: SBH is good value based on its Price-To-Earnings Ratio (6.6x) compared to the estimated Fair Price-To-Earnings Ratio (13.8x).

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$10.00
US$14.60
+46.0%
12.7%US$17.00US$12.00n/a5
Dec ’25US$13.93
US$14.60
+4.8%
12.7%US$17.00US$12.00n/a5
Nov ’25US$13.12
US$11.40
-13.1%
16.3%US$13.00US$8.00n/a5
Oct ’25US$13.49
US$11.20
-17.0%
15.4%US$13.00US$8.00n/a5
Sep ’25US$13.05
US$11.20
-14.2%
15.4%US$13.00US$8.00n/a5
Aug ’25US$10.74
US$11.20
+4.3%
15.4%US$13.00US$8.00n/a5
Jul ’25US$10.78
US$11.20
+3.9%
17.3%US$14.00US$8.00n/a5
Jun ’25US$12.18
US$11.20
-8.0%
17.3%US$14.00US$8.00n/a5
May ’25US$10.58
US$12.00
+13.4%
21.7%US$16.00US$8.00n/a5
Apr ’25US$12.57
US$12.40
-1.4%
20.8%US$16.00US$8.00n/a5
Mar ’25US$12.64
US$12.60
-0.3%
22.8%US$17.00US$8.00n/a5
Feb ’25US$13.14
US$12.00
-8.7%
24.2%US$17.00US$8.00n/a5
Jan ’25US$13.28
US$10.30
-22.4%
16.7%US$12.00US$8.00n/a5
Dec ’24US$10.38
US$10.10
-2.7%
15.5%US$12.00US$8.00US$13.935
Nov ’24US$8.49
US$11.00
+29.6%
12.9%US$13.00US$9.00US$13.125
Oct ’24US$8.38
US$12.60
+50.4%
12.9%US$15.00US$10.00US$13.495
Sep ’24US$10.44
US$12.60
+20.7%
12.9%US$15.00US$10.00US$13.055
Aug ’24US$12.00
US$15.20
+26.7%
17.8%US$19.00US$11.00US$10.745
Jul ’24US$12.35
US$15.20
+23.1%
17.8%US$19.00US$11.00US$10.785
Jun ’24US$11.31
US$15.20
+34.4%
17.8%US$19.00US$11.00US$12.185
May ’24US$14.06
US$16.40
+16.6%
16.2%US$19.00US$12.00US$10.585
Apr ’24US$15.58
US$16.40
+5.3%
16.2%US$19.00US$12.00US$12.575
Mar ’24US$15.97
US$16.40
+2.7%
16.2%US$19.00US$12.00US$12.645
Feb ’24US$16.16
US$12.70
-21.4%
14.0%US$15.00US$10.00US$13.145
Jan ’24US$12.52
US$12.70
+1.4%
14.0%US$15.00US$10.00US$13.285
Dec ’23US$11.33
US$12.13
+7.0%
12.5%US$14.00US$10.00US$10.384

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 05:56
End of Day Share Price 2024/12/30 00:00
Earnings2024/09/30
Annual Earnings2024/09/30

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

Sally Beauty Holdings, Inc. is covered by 28 analysts. 6 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Mark AltschwagerBaird
Meredith AdlerBarclays
Paul AlexanderBB&T Capital Markets