Burberry Group PLC (BRBY) fair value: what the stock is really worth
As of Oct 7, 2026: fair value of Burberry Group PLC £4.07, price £10.16, upside -59.9%, quality 65 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 27, 2026.
How to read this chart
60‑month range £5.71 – £24.41 · fair‑value band £3.57 – £4.49 · the £10.16 price screens above the £4.07 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 27, 2026.
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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.
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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.
Stock analysis
Burberry Group PLC (BRBY) currently trades at £10.16, while our model-based Fair Value estimate is £4.07, 59.9% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of £11.23 per share, and 7 of the 24 models we run sit above the £10.16 price.
Bear case: the Earnings-Based group reads lowest at £0.8100, and 17 of the 24 models stay below the price. Evidence for this calculation is high.
Scenario range: £3.57 (bear) to £4.49 (bull), the price of £10.16 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 65/100 (solid quality), in the Consumer Cyclical sector.
Weak Growth: Growth has flattened: the last year, three and five years all grew more slowly than the long-term average.
Burberry Group PLC reported revenue of £2.4B in FY2026 versus £2.8B in FY2022, a compound −3.8%/yr. Reported net income was £21.0M in FY2026, compounding −52.0%/yr from FY2022.
Key figures
Market cap 3.7B GBX · P/E ratio 173.4 · P/S ratio 1.50 · EPS (TTM) £0.0586 · Dividend yield 4.1% · Net margin 0.9% · Return on equity 2.1% · Return on assets (EBIT) 9.7%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 46 out of 100 (low confidence).
What moves the price
The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat.
The share trades about 25% below its 52-week high and 4% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at 9% fair-value upside, at −60%, BRBY screens richer than that median.
Fair Value models
Bear £3.57Fair Value £4.07Bull £4.49
Price £10.16 · Upside -59.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 6 months old). Earnings retained since then (£0.0314 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Highest evidence
FCF DCF£12.55£17.07£23.3881
Growth DCF£12.92£17.19£22.8879
Owner Earnings£10.14£13.76£18.8177
All 24 models by family
DCF Models
FCF DCF£12.55£17.07£23.3881
Owner Earnings£10.14£13.76£18.8177
5Y Revenue Exit£7.29£9.27£11.6474
5Y EBITDA Exit£12.14£17.71£23.9676
5Y P/E Exit£5.59£6.31£6.9872
10Y Revenue Exit£9.15£11.23£13.5268
10Y EBITDA Exit£12.19£16.74£22.0669
10Y P/E Exit£8.22£9.29£10.2965
Earnings-Based
Graham-Dodd£0.4000£0.8100£1.0166
EPV£3.57£4.06£4.4874
Dividend Discount
Gordon GGM£3.70£5.30£6.9169
DDM Multi-Stage£3.70£5.15£6.7667
Multiples
P/E Multiple£0.9600£1.28£1.6063
P/S Multiple£0.7400£0.9900£1.2458
P/B Multiple£0.7400£0.9900£1.2455
EV/EBIT£6.16£8.07£9.9866
EV/EBITDA£13.60£17.99£22.3867
EV/Revenue£4.30£5.95£7.6054
Asset-Based
NCAV (Graham)£1.30£1.74£2.6054
Growth DCF
Growth DCF£12.92£17.19£22.8879
Rev-Margin DCF£7.29£9.51£11.9874
Economic Profit
Residual Income£1.83£1.77£1.7676
ROIC Compounder£3.64£4.29£4.9672
Growth Earnings
Growth-Adj P/E£0.7000£1.00£1.2968
P/S and P/B multiple show the same value here: both are capped by the same earnings anchor (earnings per share times 17), because margin and return on equity do not support the sector multiple.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Growth has flattened: the last year, three and five years all grew more slowly than the long-term average.
Revenue growth 1 year
−1.7%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−7.9%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+0.6%
Start year 2021 (pandemic). Over 10 years: −0.4% a year
Revenue growth 26 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+9.6%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
−38.4%
Earnings growth per share plus dividend.
Earnings per share, growth per year−42.5%
Dividend (yield on the price)4.1%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−42.5% vs −21.9%, slowing
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.18% → 6%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−4.3%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+5.0%
Yearly sales growth analysts expect, extended to five years.
After inflation (UK: IMF forecast 2.3% a year to 2030, 3.3% from 2016 to 2025) that is about −6.4% a year for the price and +2.6% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (95 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Luxury Goods · 122 stocks
Beats the industry median on 5/15 measures
Overall it trails its industry peers.
Valuation
Quality Score65 · Above median
Fair Value upside−59.9% · Bottom 25%
Profitability
Return on equity (TTM)2.1% · Bottom 25%
Return on assets3.1% · Below median
Net margin (TTM)0.9% · Bottom 25%
Operating margin (TTM)10.2% · Above median
Growth and dividend
Revenue growth0.9% · Below median
Dividend yield (TTM)4.1% · Above median
Balance sheet
Debt / equity0.54× · Highest 25%
Valuation Multiplesvs Luxury Goods median · lower = cheaper
P/E (TTM)173.4× · Priciest 25%
P/B3.89× · Priciest 25%
P/S (TTM)1.51× · Pricier than median
P/FCF9.9× · Cheaper than median
EV/EBITDA12.9× · Pricier than median
PEG0.37× · Cheapest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 15
FUTURE (revenue growth)5· sector 53
PAST (return on equity)9· sector 54
HEALTH (low debt)73· sector 99
DIVIDEND (yield)83· sector 53
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Burberry Group PLC Fair Value". https://www.fairvalue-calculator.com/stock/BRBY
Frequently asked questions
Is Burberry Group PLC (BRBY) overvalued or undervalued?
As of Sep 27, 2026, our model estimates a fair value of £4.07 versus a price of £10.16, about −60% upside (overvalued).
What is the fair value of BRBY?
Our model-based fair value for Burberry Group PLC is £4.07 (as of Sep 27, 2026), built from audited fundamentals. The current price: £10.16.
What is the quality score of BRBY?
Burberry Group PLC has a Quality Score of 65/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Burberry Group PLC (BRBY)?
Our model-based price target is the fair value of £4.07 (as of Sep 27, 2026) from 24 valuation models. Cautious scenario £3.57, optimistic scenario £4.49. It is a calculation from audited fundamentals, not an analyst target.
What is the Burberry Group PLC stock forecast for 2026?
Our models put fair value at £4.07, about −60% upside versus a price of £10.16 (overvalued). Cautious scenario £3.57, optimistic scenario £4.49. The calculation is refreshed regularly with new filings.
What is the revenue of Burberry Group PLC (BRBY)?
Burberry Group PLC reported trailing-twelve-month revenue of about £2.4B (latest available figure, as of Sep 27, 2026).
Does Burberry Group PLC pay a dividend?
Burberry Group PLC currently shows a dividend yield of about 4.14% relative to its recent price (as of Sep 27, 2026).
What growth is priced into Burberry Group PLC (BRBY)?
For today's price to be fair in a discounted-cash-flow model, Burberry Group PLC would have to grow free cash flow by -4.3 % per year for five years (discount rate 9.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +0.6 % per year. As of Sep 27, 2026.
What discount rate (WACC) does the fair value of BRBY use?
Our models discount Burberry Group PLC at 9.5 %: a base by market capitalisation (mid), damped by beta 0.69, country premium for United Kingdom. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Burberry Group PLC that is -4.3 % per year a year over ten years, using the same discount rate (9.5 %) and the same formula as our fair value.
How much growth has Burberry Group PLC (BRBY) delivered so far?
Over the past 5 years revenue at Burberry Group PLC grew +0.6 % a year. The price currently implies -4.3 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Burberry Group PLC (BRBY) growing?
The median revenue growth in the sector is +4.2 % a year. That is the yardstick for the growth priced into Burberry Group PLC (-4.3 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Burberry Group PLC (BRBY)?
The free-cash-flow yield on the price is 10.11 %: that much free cash flow Burberry Group PLC produces per unit of market value. When it exceeds the discount rate of our models (9.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Burberry Group PLC (BRBY)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Burberry Group PLC it is £4.07 per share (as of Sep 27, 2026), against a price of £10.16. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Burberry Group PLC stock overvalued or undervalued in 2026?
As of Sep 27, 2026, BRBY trades above its calculated fair value: price £10.16, fair value £4.07, a gap of about −60% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of BRBY?
No. The price is what the market pays today (£10.16); the fair value is what the company's own numbers justify (£4.07). For Burberry Group PLC the two are £6.09 per share apart. That gap is exactly why we show both numbers side by side.
How much is Burberry Group PLC worth?
The market values Burberry Group PLC at about 3.7B GBX (market capitalisation, as of Sep 27, 2026). Per share that is £10.16; our models calculate a fair value of £4.07 per share.
What do the bullish and bearish scenarios say about BRBY?
Our models span a range for Burberry Group PLC: cautious scenario £3.57, base £4.07, optimistic £4.49 per share (as of Sep 27, 2026, price £10.16). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of BRBY?
Burberry Group PLC trades at a price-to-earnings ratio of 173.4 (as of Sep 27, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of £4.07 is built from several models across several years. Excluding one-off items of fiscal year 2026 it is 66.8 (reported 173.4). Other multiples: PEG 0.4, P/B 3.9, P/S 1.5, EV/EBITDA 12.9.
What is the PEG ratio of BRBY?
The PEG ratio of Burberry Group PLC is 0.37 (P/E divided by earnings growth, as of Sep 27, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Burberry Group PLC (BRBY)?
Balance-sheet figures for Burberry Group PLC (as of Sep 27, 2026): return on equity 2.1%, debt of 0.54 per unit of equity. They feed the Quality Score of 65/100, which measures business quality independently of the share price.
How far is BRBY from its 52-week high?
Burberry Group PLC trades at £10.16, about 25% below its 52-week high of £13.60 and 4% above the low of £9.78 (as of Oct 7, 2026). Distance from the high says nothing about value: that is what the fair value of £4.07 is for.
Which stocks are comparable to Burberry Group PLC?
From the same area (Consumer Cyclical) we also value Compagnie Financière Richemont SA, Christian Dior SE, Titan Company, Tapestry, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Burberry Group PLC stock attractive at the current price?
The data as of Sep 27, 2026: price £10.16, calculated fair value £4.07 (−60%), Quality Score 65/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of BRBY calculated?
We run Burberry Group PLC through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of £4.07, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.3 % above its aggregate fair value. Burberry Group PLC itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Burberry Group PLC (BRBY)?
The closing price on Oct 7, 2026 was £10.16. Our model-based fair value is £4.07, about −60% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Burberry Group PLC right now?
The price sits above even our optimistic bull case (£4.49). The favourable scenario is already priced in. Solid but not exceptional quality (65/100) and above fair value, neither a clear bargain nor a standout compounder.
Where does the earnings growth of Burberry Group PLC (BRBY) come from?
Earnings per share at Burberry Group PLC grew −6.0 % a year from 2015 to 2026. Broken into its drivers: revenue per share +2.7 %, EBIT margin −4.9 %, tax rate −1.2 %, residual (interest, one-offs) −2.6 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Burberry Group PLC
How large is the market capitalisation of Burberry Group PLC (BRBY)?
The market capitalisation of Burberry Group PLC is 3.7B GBX. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Burberry Group PLC (BRBY)?
The price-to-sales ratio of Burberry Group PLC is 1.50 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Burberry Group PLC (BRBY)?
Earnings per share at Burberry Group PLC are £0.0586 (price ÷ EPS = P/E 173.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Burberry Group PLC (BRBY)?
The dividend yield of Burberry Group PLC is 4.1%. Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Burberry Group PLC (BRBY)?
The net margin of Burberry Group PLC is 0.9% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Burberry Group PLC (BRBY)?
The return on equity (ROE) of Burberry Group PLC is 2.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Burberry Group PLC (BRBY)?
On an EBIT basis the return on assets of Burberry Group PLC is 9.7% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Burberry Group PLC (BRBY)?
The operating margin of Burberry Group PLC is 10.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Burberry Group PLC (BRBY)?
Revenue at Burberry Group PLC is growing +0.9% versus a year earlier (3y avg −7.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Burberry Group PLC (BRBY)?
Earnings per share at Burberry Group PLC are growing −59.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Burberry Group PLC (BRBY) carry?
The net debt of Burberry Group PLC is 852M GBX (fiscal year 2026, ≈ 2.3 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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