Associated British Foods plc

LSE:ABF Stock Report

Market Cap: UK£12.9b

Associated British Foods Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

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

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: ABF (£18.43) is trading below our estimate of future cash flow value (£21.75)

Significantly Below Future Cash Flow Value: ABF is trading below future cash flow value, but not by a significant amount.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for ABF. This is calculated by dividing ABF's market cap by their current earnings.
What is ABF's PE Ratio?
PE Ratio13.6x
EarningsUK£950.00m
Market CapUK£12.90b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for ABF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.7x
CWK Cranswick
18.3x6.78%UK£2.9b
TATE Tate & Lyle
22.8x21.13%UK£2.2b
PFD Premier Foods
12.5x1.83%UK£1.7b
PRN Princes Group
21.1x18.44%UK£753.7m
ABF Associated British Foods
13.6x8.74%UK£12.9b

Price-To-Earnings vs Peers: ABF is good value based on its Price-To-Earnings Ratio (13.6x) compared to the peer average (18.7x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does ABF's PE Ratio compare vs other companies in the European Food Industry?

5 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ABF 13.6xIndustry Avg. 16.2xNo. of Companies17PE01020304050+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ABF is good value based on its Price-To-Earnings Ratio (13.6x) compared to the European Food industry average (16.2x).

Price to Earnings Ratio vs Fair Ratio

What is ABF'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.

ABF PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.6x
Fair PE Ratio19x

Price-To-Earnings vs Fair Ratio: ABF is good value based on its Price-To-Earnings Ratio (13.6x) compared to the estimated Fair Price-To-Earnings Ratio (19x).

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 ABF forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£18.43
UK£18.68
+1.40%
10.30%UK£21.50UK£14.50n/a17
May ’27UK£18.33
UK£18.73
+2.16%
10.29%UK£21.50UK£14.50n/a17
Apr ’27UK£18.90
UK£19.59
+3.69%
9.74%UK£22.50UK£16.50n/a18
Mar ’27UK£19.77
UK£19.54
-1.18%
9.40%UK£22.40UK£16.50n/a18
Feb ’27UK£19.05
UK£19.54
+2.55%
9.40%UK£22.40UK£16.50n/a18
Jan ’27UK£21.27
UK£22.39
+5.26%
14.92%UK£31.00UK£18.00n/a17
Dec ’26UK£21.34
UK£22.76
+6.65%
14.02%UK£31.00UK£18.00n/a17
Nov ’26UK£22.95
UK£21.86
-4.74%
14.49%UK£31.00UK£17.50n/a17
Oct ’26UK£20.69
UK£21.83
+5.49%
14.70%UK£31.00UK£17.50n/a17
Sep ’26UK£21.90
UK£22.24
+1.57%
14.70%UK£31.00UK£17.50n/a17
Aug ’26UK£21.78
UK£22.30
+2.37%
14.63%UK£31.00UK£17.50n/a17
Jul ’26UK£20.97
UK£21.66
+3.27%
14.83%UK£31.00UK£17.50n/a17
Jun ’26UK£20.83
UK£21.84
+4.85%
14.71%UK£31.00UK£17.50UK£18.1618
May ’26UK£20.16
UK£22.25
+10.35%
17.25%UK£31.20UK£17.30UK£18.3318
Apr ’26UK£19.27
UK£22.78
+18.24%
16.98%UK£31.20UK£17.30UK£18.9017
Mar ’26UK£18.95
UK£22.49
+18.69%
17.56%UK£31.20UK£17.30UK£19.7718
Feb ’26UK£19.02
UK£22.99
+20.88%
16.98%UK£31.20UK£17.30UK£19.0518
Jan ’26UK£20.43
UK£25.68
+25.68%
10.70%UK£31.20UK£19.79UK£21.2717
Dec ’25UK£21.98
UK£25.84
+17.58%
11.79%UK£31.20UK£19.79UK£21.3417
Nov ’25UK£22.83
UK£25.80
+13.01%
12.03%UK£31.20UK£19.79UK£22.9517
Oct ’25UK£23.17
UK£25.66
+10.75%
11.87%UK£31.20UK£19.79UK£20.6918
Sep ’25UK£24.90
UK£26.67
+7.10%
12.59%UK£34.00UK£19.79UK£21.9018
Aug ’25UK£24.87
UK£26.86
+8.01%
12.29%UK£34.00UK£19.79UK£21.7818
Jul ’25UK£24.96
UK£26.86
+7.62%
12.29%UK£34.00UK£19.79UK£20.9718
Jun ’25UK£25.50
UK£26.83
+5.20%
12.15%UK£34.00UK£19.79UK£20.8318
UK£18.68
Fair Value
1.4% undervalued intrinsic discount
17
Number of Analysts

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 Analysis2026/06/02 23:30
End of Day Share Price 2026/06/02 00:00
Earnings2026/02/28
Annual Earnings2025/09/13

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.

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 Github.

Analyst Sources

Associated British Foods plc is covered by 38 analysts. 18 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Rebecca McClellanBanco Santander
Alejandro Conde FraisoliBanco Santander
Nicolas Jerome CeronBarclays