B&M European Value Retail (BME.L)
Consumer · LSE · UK
Fundamentals
Valuation and ratings
B&M European Value Retail trades at £2.00, which is 32% above the £1.36 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 36 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 12.5 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About B&M European Value Retail
B&M European Value Retail plc operates as a European variety discount retailer in the United Kingdom and France. The company operates through three segments: B&M UK, Heron Foods, and B&M France. It operates a chain of stores under the B&M in the United Kingdom and France, and Heron Foods brand names. The company also engages in general retail, property management, and convenience retail activities. In addition, it sells fast-moving consumer goods and general merchandise products, grocery, and frozen food products. B&M European Value Retail plc was founded in 1978 and is based in Saint Helier, Jersey.
BME.L passes 3 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is B&M European Value Retail (BME.L) undervalued?
Against our discounted cash flow estimate of £1.36, BME.L at £2.00 is 32% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is BME.L's P/E ratio?
BME.L trades at 12.5 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.