JB Hi-Fi (JBH.AX)
Consumer · ASX · Australia
Fundamentals
Valuation and ratings
JB Hi-Fi trades at A$79.93, close to the A$84.92 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 51 out of 100, which is a moat, but not a deep one. 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 17.8 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 JB Hi-Fi
JB Hi-Fi Limited retails home consumer products. The company operates through four segments: JB Hi-Fi Australia, JB Hi-Fi New Zealand, The Good Guys, and e&s. It provides computers and tablets; IT accessories and PC parts; headphones, speakers, and audio; smart homes; mobile phones; home appliances comprising large and small appliances, and personal care devices; gaming devices; turntables and vinyl accessories; and collectibles and merchandise, such as trading cards. The company also offers outdoors and travel products, including electric scooters and accessories, garden and outdoor living, and travel products; smart watches, fitness trackers, smart rings, fitness equipment, smart drink bottles, massagers, heat pads, smart scales and health monitors, air treatment, and sleep solutions; drones and cameras; office supplies comprising writing, stationery, notebooks, journals, planners, office tech, office furniture, and filing and storage products; and content creator gear. Additionally, it provides installation services for TV, projector, audio, computer, mobile, tablet, smart home, Wi-Fi, and home appliances; mobile services that include mobile plans; trade in services; home appliance delivery services; and information technology services. The company sells its products through branded retail store network comprising JB Hi-Fi/JB Hi-Fi Home stores in Australia; JB Hi-Fi stores in New Zealand; e&s stores in Australia; and The Good Guys stores in Australia, as well as online. JB Hi-Fi Limited was founded in 1974 and is based in Southbank, Australia.
JBH.AX passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is JB Hi-Fi (JBH.AX) undervalued?
Against our discounted cash flow estimate of A$84.92, JBH.AX at A$79.93 is 6% below 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 JBH.AX's P/E ratio?
JBH.AX trades at 17.8 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.