Burberry Group (BRBY.L)
Consumer · LSE · UK
Fundamentals
Valuation and ratings
Burberry Group trades at £11.21, which is 62% above the £4.28 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 38 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 178.3 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 Burberry Group
Burberry Group plc, together with its subsidiaries, engages in manufacturing, retail, and wholesale of luxury goods under the Burberry brand in the Asia Pacific, China, Europe, the Middle East, India, Africa, and the Americas. The company operates in two segments, Retail/Wholesale and Licensing. It offers accessories, womenswear, menswear, childrenswear, and others, as well as eyewear and beauty, and bags. The company also licenses third parties to manufacture and distribute products using the Burberry trademarks. It sells its products through operated stores, concessions, outlets, digital commerce, Burberry franchisees, department stores, multi-brand specialty accounts, and through the Burberry.com website. Burberry Group plc was founded in 1856 and is headquartered in London, the United Kingdom.
BRBY.L passes 1 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Burberry Group (BRBY.L) undervalued?
Against our discounted cash flow estimate of £4.28, BRBY.L at £11.21 is 62% 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 BRBY.L's P/E ratio?
BRBY.L trades at 178.3 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.