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HORNBACH Holding (HBH) Fair Value & Analysis

Consumer Cyclical · DE · Market cap €1.2B

HH HORNBACH Holding HBH · XETRA
Price€85.40
Fair Value€177.96
Upside+108.4%
Quality55/100
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Healthy Growth
Thin margins · 2.0% net margin
Low debt · generates free cash flow
3.04% dividend yield
Ranks above peers (9/15)
Narrow moat 36/100
Evidence: High Range €113.07 – €237.89 Share as image

Fair value as of: Jul 14, 2026

From 26 valuation models · updated 26 days ago

Fair value updated Jul 14, 2026, revised from €177.61 to €177.96 (+0.2%) since Jun 25, 2026. Share price +12.3% over the past month.

A solid business, screening 108% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (€113.07). The market is more pessimistic than our downside scenario.
  • Solid quality (55/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (€113.07 to €237.89) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

€119.52 €51.08 Fair Value €177.96 Jun 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 14, 2026.

How to read this chart

60‑month range €51.08 – €119.52 · fair‑value band €113.07 – €237.89 · the €85.40 price screens below the €177.96 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 14, 2026.

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Analysis

HORNBACH Holding (HBH) currently trades at €85.40, while our model-based Fair Value estimate is €177.96, implying the stock looks roughly 108.4% undervalued today. The Quality Score stands at 55/100 (solid quality), in the Consumer Cyclical 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, HORNBACH Holding generated revenue of €6.4B at a net margin of 2.2%. Revenue grew 3.8% year over year. It earns a return on equity of 6.9%. Net debt stands at €1.3B. Fundamentals as of Jul 14, 2026

Our scenario range runs from €113.07 (bear case) to €237.89 (bull case); at €85.40, 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. The share trades about 21% below its 52-week high and 15% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -21% fair-value upside, at 108%, HBH 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
Growth DCF €100.43 €136.02 €179.21 80
Residual Income €97.44 €99.37 €97.09 76
Rev-Margin DCF €117.87 €187.20 €263.85 74
All 26 models by family
DCF Models
FCF DCF €99.19 €139.20 €190.46 38
Owner Earnings €90.94 €127.72 €174.84 31
5Y Revenue Exit €117.87 €186.70 €272.90 39
5Y EBITDA Exit €176.56 €293.45 €427.15 41
5Y P/E Exit €112.96 €177.77 €243.62 38
10Y Revenue Exit €105.35 €162.05 €234.83 36
10Y EBITDA Exit €142.71 €228.75 €339.61 37
10Y P/E Exit €106.03 €156.46 €214.95 35
Earnings-Based
Graham-Dodd €58.82 €158.85 €208.05 54
Lynch FV €31.12 €44.46 €57.80 50
PEG = 1.0 €31.12 €44.46 €57.80 46
EPV €93.19 €106.28 €117.20 59
Dividend Discount
Gordon GGM €18.64 €33.60 €46.25 70
DDM Multi-Stage €18.64 €27.38 €35.42 61
Multiples
P/E Multiple €142.74 €190.31 €237.89 63
P/S Multiple €110.30 €147.06 €183.83 58
P/B Multiple €110.30 €147.06 €183.83 55
EV/EBIT €207.91 €278.15 €348.40 53
EV/EBITDA €262.42 €350.84 €439.25 54
EV/Revenue €139.22 €200.10 €260.98 43
Asset-Based
NCAV (Graham) €64.53 €86.48 €129.07 50
Growth DCF
Growth DCF €100.43 €136.02 €179.21 80
Rev-Margin DCF €117.87 €187.20 €263.85 74
Economic Profit
Residual Income €97.44 €99.37 €97.09 76
ROIC Compounder €93.19 €106.28 €117.20 72
Growth Earnings
Growth-Adj P/E €112.18 €160.25 €208.33 68

Widest divergence: Multiples (€190.31) versus Dividend Discount (€27.38). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) €6.5B
Revenue growth (YoY) +4.9%
Net margin 2.0%
Return on equity 6.3%
Free cash flow €179M FY2026
P/E ratio 9.3
More key figures
Operating margin 8.0%
EPS (TTM) €8.28
Dividend yield 3.0%
EPS growth (YoY) -5.7%
Net debt €1.3B FY2026

Figures from reported company fundamentals · as of Jul 14, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 55/100

Of which business quality 55 · Market factors (momentum, volatility) 47

Profitability 51
Margins and returns on capital today
Quality Growth 29
Are margins and returns improving?
Cashflow 45
Earnings quality: real cash, not paper profit
Fin. Strength 50
Balance sheet, leverage, solvency risk
Investment 86
Disciplined investing over empire-building
Low Volatility 73
Calm price path (market factor)
Momentum 39
Price trend over the last 3–12 months (market factor)
52W Momentum 30
Distance to the 52-week high (market factor)
Net Issuance 82
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

HORNBACH Holding AG & Co. KGaA, through its subsidiaries, develops and operates do-it-yourself (DIY) megastores with garden centers in Germany and other European countries. The company offers hardware/electrical, paint/wallpaper/flooring, construction materials/timber/prefabricated components, sanitary/tiles, and garden products.

Full company description

HORNBACH Holding AG & Co. KGaA, through its subsidiaries, develops and operates do-it-yourself (DIY) megastores with garden centers in Germany and other European countries. The company offers hardware/electrical, paint/wallpaper/flooring, construction materials/timber/prefabricated components, sanitary/tiles, and garden products. It also stocks and supplies various construction materials and tools; and offers professional advice for various product ranges and lines of trade, including shell construction and roofing, interior fittings and facades, and civil engineering, and garden and landscape construction materials for construction, or refurbishment renovation and modernization projects. In addition, the company develops retail real estate properties, as well as sell building materials. Further, it operates HORNBACH online stores. The company was founded in 1877 and is based in Bornheim, Germany.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

HORNBACH Holding reported revenue of €6.4B in FY2026 versus €5.9B in FY2022, a compound +2.3%/yr. Reported net income was €138M in FY2026, compounding −8.8%/yr from FY2022.

Growth Quality 62/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
€6.4B
Latest YoY
+3.8%
Avg. growth/yr (3Y)
+0.9%
Avg. growth/yr (5Y)
+3.4%
Avg. growth/yr (26Y)
+3.9%
Revenue +2.3%/yr
FY22 €5.9B
FY23 €6.3B
FY24 €6.2B
FY25 €6.2B
FY26 €6.4B
Net income −8.8%/yr
FY22 €200M
FY23 €157M
FY24 €125M
FY25 €141M
FY26 €138M

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Cite: Fair Value Calculator (2026). "HORNBACH Holding Fair Value". https://www.fairvalue-calculator.com/stock/HBH

Earlier news

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

Peer Group

Home Improvement Retail · 36 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 55 · Below median
Fair Value upside +108% · Top 25%
Return on equity (TTM) 6% · Below median
Return on assets 3% · Below median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 8% · Above median
Revenue growth 5% · Above median
Dividend yield (TTM) 3.0% · Above median
Debt / equity 0.17× · Higher than median

Valuation Multiples vs Home Improvement Retail median · lower = cheaper

P/E (TTM) 9.3× · Cheaper than 75% of peers
P/B 0.69× · Cheaper than 75% of peers
P/S (TTM) 0.22× · Cheaper than 75% of peers
P/FCF 7.9× · Pricier than median
EV/EBITDA 3.9× · Cheaper than 75% of peers
PEG 1.31× · Cheaper than median

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 25
FUTURE 25 · sector 11
PAST 25 · sector 30
HEALTH 92 · sector 95
DIVIDEND 61 · sector 50

Insider activity: 45/100

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 Home Improvement Retail stocks, each showing price versus our Fair Value estimate (as of Jul 14, 2026).

Stock Price Fair Value vs Fair Value
The Home Depot, Inc HD $337.74 $236.85 -30%
Lowe's Companies, Inc LOW $209.66 $186.32 -11%
Wesfarmers Limited WES A$92.80 A$50.50 -46%
Floor & Decor Holdings FND $56.40 $32.81 -42%
Mr D.I.Y. Group 5296 1.70 MYR 1.47 MYR -14%
Home Product Center Public Company HMPROR 6.65 THB 6.31 THB -5%
Siam Global House Public Company GLOBAL 7.50 THB 5.96 THB -21%
Dohome Public Company DOHOME 3.86 THB 2.90 THB -25%
Haverty Furniture Companies, Inc HVT $25.66 $22.53 -12%
Test-Rite International Co 2908 22.00 TWD 9.18 TWD -58%

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Frequently asked questions

Is HORNBACH Holding (HBH) overvalued or undervalued?
As of Jul 14, 2026, our model estimates a fair value of €177.96 versus a price of €85.40, about +108% (undervalued).
What is the fair value of HBH?
Our model-based fair value for HORNBACH Holding is €177.96 (as of Jul 14, 2026), built from audited fundamentals. The current price is €85.40.
What is the quality score of HBH?
HORNBACH Holding has a Quality Score of 55/100. 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 revenue of HORNBACH Holding (HBH)?
HORNBACH Holding reported trailing-twelve-month revenue of about €6.4B (latest available figure, as of Jul 14, 2026).
What is the net profit margin of HBH?
The net profit margin of HORNBACH Holding is about 2.2%, meaning it keeps roughly 2.2% of revenue as net income. Based on the latest reported figures.
Does HORNBACH Holding pay a dividend?
HORNBACH Holding currently shows a dividend yield of about 2.99% relative to its recent price (as of Jul 14, 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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