H & M Hennes & Mauritz AB (publ)

OTCPK:HNNM.Y Stock Report

Market Cap: US$22.4b

H & M Hennes & Mauritz Valuation

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

Valuation Score

0/6

Valuation Score 0/6

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

Below Fair Value: HNNM.Y ($2.74) is trading above our estimate of fair value ($1.68)

Significantly Below Fair Value: HNNM.Y is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HNNM.Y?

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

The above table shows the Price to Earnings ratio for HNNM.Y. This is calculated by dividing HNNM.Y's market cap by their current earnings.
What is HNNM.Y's PE Ratio?
PE Ratio24.4x
EarningsSEK 10.12b
Market CapSEK 246.56b

Price to Earnings Ratio vs Peers

How does HNNM.Y's PE Ratio compare to its peers?

The above table shows the PE ratio for HNNM.Y vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.9x
BURL Burlington Stores
40x17.8%US$16.9b
ROST Ross Stores
22.6x7.7%US$46.7b
ANF Abercrombie & Fitch
14.6x2.9%US$7.4b
GAP Gap
10.5x5.6%US$8.1b
HNNM.Y H & M Hennes & Mauritz
24.4x16.9%US$246.6b

Price-To-Earnings vs Peers: HNNM.Y is expensive based on its Price-To-Earnings Ratio (24.4x) compared to the peer average (21.9x).

Price to Earnings Ratio vs Industry

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

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TKLF Tokyo Lifestyle
1.7xn/aUS$11.23m
SSOK Sunstock
1.8xn/aUS$771.79k
MASN Maison Luxe
0.08xn/aUS$144.03k
EXPR.Q Express
0.000002xn/aUS$11.24k
HNNM.Y 24.4xIndustry Avg. 15.6xNo. of Companies11PE01224364860+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HNNM.Y is expensive based on its Price-To-Earnings Ratio (24.4x) compared to the US Specialty Retail industry average (15.8x).

Price to Earnings Ratio vs Fair Ratio

What is HNNM.Y'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.

HNNM.Y PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.4x
Fair PE Ratio21x

Price-To-Earnings vs Fair Ratio: HNNM.Y is expensive based on its Price-To-Earnings Ratio (24.4x) compared to the estimated Fair Price-To-Earnings Ratio (21x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

1-800-FLOWERS.COM

US$498.0m

Provides gifts for various occasions in the United States and internationally.

FLWS

US$7.53

7D

-15.2%

1Y

-13.6%

B&M European Value Retail

UK£3.5b

Operates general merchandise and grocery stores.

BMRR.Y

UK£17.80

7D

-9.2%

1Y

-33.4%

MarineMax

US$664.1m

Operates as a recreational boat and yacht retailer and superyacht services company in the United States.

HZO

US$29.40

7D

-10.1%

1Y

-4.0%