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Associated British Foods plc (ABF) Fair Value & Analysis

Consumer Defensive · GB · Market cap 14.4B GBX

AB Associated British Foods plc ABF · LSE
Price£20.52
Fair Value£30.76
Upside+49.9%
Quality62/100
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Mixed Growth
Thin margins · 4.9% net margin
generates free cash flow
3.14% dividend yield
Mixed vs. peers (8/14)
Narrow moat 43/100
Evidence: High Range £21.16 – £38.45 Share as image

Fair value as of: Jul 19, 2026

From 26 valuation models · updated 19 days ago

Share price +7.5% over the past month.

A solid business, screening 50% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (£21.16). The market is more pessimistic than our downside scenario.
  • Solid quality (62/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (£21.16 to £38.45) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

£24.47 £10.57 Fair Value £30.76 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range £10.57 – £24.47 · fair‑value band £21.16 – £38.45 · the £20.52 price screens below the £30.76 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

Associated British Foods plc (ABF) currently trades at £20.52, while our model-based Fair Value estimate is £30.76, implying the stock looks roughly 49.9% undervalued today. We read business quality at 62/100 (solid quality), in the Consumer Defensive sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Associated British Foods plc generated revenue of £19.4B at a net margin of 4.9%. Revenue grew 1.1% year over year. It earns a return on equity of 8.5%. Net debt stands at £2.6B. Fundamentals as of Jul 19, 2026

Our scenario range runs from £21.16 (bear case) to £38.45 (bull case); at £20.52, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Consumer Defensive peers we cover trades at -3% fair-value upside, at 50%, ABF screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income £13.71 £15.03 £19.87 76
Growth DCF £19.94 £28.08 £39.48 72
Gordon GGM £8.61 £17.90 £28.39 70
All 26 models by family
DCF Models
FCF DCF £19.52 £28.50 £41.76 38
Owner Earnings £15.87 £23.04 £33.61 31
5Y Revenue Exit £20.82 £32.11 £46.29 39
5Y EBITDA Exit £28.65 £46.39 £66.72 41
5Y P/E Exit £20.41 £31.36 £42.53 38
10Y Revenue Exit £19.54 £29.64 £42.71 36
10Y EBITDA Exit £25.11 £39.42 £57.94 37
10Y P/E Exit £19.91 £29.13 £39.90 35
Earnings-Based
Graham-Dodd £9.96 £27.15 £35.60 54
Lynch FV £5.36 £7.66 £9.96 50
PEG = 1.0 £5.36 £7.66 £9.96 46
EPV £18.67 £21.53 £24.03 59
Dividend Discount
Gordon GGM £8.61 £17.90 £28.39 70
DDM Multi-Stage £8.61 £13.46 £18.62 61
Multiples
P/E Multiple £21.97 £29.29 £36.62 63
P/S Multiple £18.67 £24.90 £31.12 58
P/B Multiple £18.67 £24.90 £31.12 55
EV/EBIT £32.93 £43.41 £53.88 53
EV/EBITDA £37.97 £50.12 £62.28 54
EV/Revenue £22.69 £31.77 £40.85 43
Asset-Based
NCAV (Graham) £7.90 £10.59 £15.80 50
Growth DCF
Growth DCF £19.94 £28.08 £39.48 72
Rev-Margin DCF £20.82 £32.17 £44.75 67
Economic Profit
Residual Income £13.71 £15.03 £19.87 76
ROIC Compounder £19.22 £23.67 £29.00 67
Growth Earnings
Growth-Adj P/E £17.46 £24.95 £32.43 68

Widest divergence: DCF Models (£29.64) versus Earnings-Based (£7.66). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) 19.4B GBX
Revenue growth (YoY) +1.1%
Net margin 4.9%
Return on equity 8.5%
Free cash flow 1.1B GBX FY2025
P/E ratio 15.4
More key figures
Operating margin 8.3%
EPS (TTM) £1.33
Dividend yield 3.1%
EPS growth (YoY) -6.3%
Net debt 2.6B GBX FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 62/100

Of which business quality 64 · Market factors (momentum, volatility) 57

Profitability 47
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 53
Earnings quality: real cash, not paper profit
Fin. Strength 70
Balance sheet, leverage, solvency risk
Investment 93
Disciplined investing over empire-building
Low Volatility 73
Calm price path (market factor)
Momentum 49
Price trend over the last 3–12 months (market factor)
52W Momentum 51
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Associated British Foods plc engages in the food, ingredients, and retail businesses worldwide. It operates through five segments: Retail, Grocery, Ingredients, Sugar, and Agriculture.

Full company description

Associated British Foods plc engages in the food, ingredients, and retail businesses worldwide. It operates through five segments: Retail, Grocery, Ingredients, Sugar, and Agriculture. The Retail segment is involved in buying and merchandising clothing and accessories through the Primark and Penneys retail chains, which offer women's, men's, and kidswear, as well as beauty, homeware, and accessories. The Grocery segment manufactures grocery products, including hot beverages, sugar, vegetable oils, balsamic vinegars, bread and baked goods, cereals, ethnic food and meat products to retail, wholesale, and foodservice businesses. The Ingredients segment manufactures yeast and bakery ingredients, specialty ingredients focused on enzymes, procession extracts, health and nutrition, and pharmaceutical delivery systems. The Sugar segment is involved in growing and processing sugar beet and sugar cane. The Agriculture segment manufactures specialty feed ingredients, premix, and compound animal feed; and other products and services for the agriculture sector. The company was incorporated in 1934 and is headquartered in London, the United Kingdom. Associated British Foods plc operates as a subsidiary of Wittington Investments Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Associated British Foods plc reported revenue of £19.5B in FY2025 versus £13.9B in FY2021, a compound +8.8%/yr. Reported net income was £1.0B in FY2025, compounding +21.0%/yr from FY2021.

Growth Quality 62/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
£19.5B
Latest YoY
−3.1%
Avg. growth/yr (3Y)
+4.6%
Avg. growth/yr (5Y)
+6.9%
Avg. growth/yr (39Y)
+4.8%
Revenue +8.8%/yr
FY21 £13.9B
FY22 £17.0B
FY23 £19.8B
FY24 £20.1B
FY25 £19.5B
Net income +21.0%/yr
FY21 £478M
FY22 £700M
FY23 £1.0B
FY24 £1.5B
FY25 £1.0B

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Cite: Fair Value Calculator (2026). "Associated British Foods plc Fair Value". https://www.fairvalue-calculator.com/stock/ABF

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Packaged Foods · 650 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 62 · Top 25%
Fair Value upside +50% · Top 25%
Return on equity (TTM) 8% · Above median
Return on assets 5% · Above median
Net margin (TTM) 5% · Above median
Operating margin (TTM) 8% · Above median
Revenue growth 1% · Below median
Dividend yield (TTM) 3.1% · Above median

Valuation Multiples vs Packaged Foods median · lower = cheaper

P/E (TTM) 15.4× · Cheaper than median
P/B 1.75× · Pricier than median
P/S (TTM) 0.99× · Pricier than median
P/FCF 16.9× · Pricier than 75% of peers
EV/EBITDA 8.3× · Pricier than median
PEG 2.50× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 30
FUTURE 6 · sector 20
PAST 34 · sector 27
HEALTH 0 · sector 96
DIVIDEND 63 · sector 47

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Packaged Foods stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
Nestlé India Limited NESTLEIND ₹1,427 ₹362.37 -75%
Britannia Industries Limited BRITANNIA ₹5,413 ₹1,870 -65%
Tata Consumer Products Limited TATACONSUM ₹1,089 ₹327.27 -70%
PT Indofood CBP Sukses Makmur Tbk ICBP 6,650 IDR 15,757 IDR +137%
Samyang Foods Co 003230 1,139,000 KRW 1,010,543 KRW -11%
Patanjali Foods Limited PATANJALI ₹413.80 ₹157.04 -62%
Vietnam Dairy Products Joint Stock Company VNM 58,500 VND 68,259 VND +17%
PT Mayora Indah Tbk, MYOR 1,750 IDR 2,699 IDR +54%
PT Cisarua Mountain Dairy Tbk CMRY 4,490 IDR 4,355 IDR -3%
Nongshim Co 004370 348,500 KRW 530,619 KRW +52%

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Frequently asked questions

Is Associated British Foods plc (ABF) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of £30.76 versus a price of £20.52, about +50% (undervalued).
What is the fair value of ABF?
Our model-based fair value for Associated British Foods plc is £30.76 (as of Jul 19, 2026), built from audited fundamentals. The current price is £20.52.
What is the quality score of ABF?
Associated British Foods plc has a Quality Score of 62/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Associated British Foods plc (ABF)?
Associated British Foods plc reported trailing-twelve-month revenue of about £19.4B (latest available figure, as of Jul 19, 2026).
What is the net profit margin of ABF?
The net profit margin of Associated British Foods plc is about 4.9%, meaning it keeps roughly 4.9% of revenue as net income. Based on the latest reported figures.
Does Associated British Foods plc pay a dividend?
Associated British Foods plc currently shows a dividend yield of about 3.46% relative to its recent price (as of Jul 19, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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