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Associated British Foods PLC (ABF) Fair Value & Analysis

Consumer Defensive · GB · Market cap 14.4B GBX · ISIN GB0006731235

What is Associated British Foods PLC really worth?

AB Associated British Foods PLC ABF · LSE
Price£20.72
Fair Value£30.76
Upside+48.5%
Quality65/100

A solid business, trading 33% below our fair value of £30.76.

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Strengths

generates free cash flow

Risks

!Mixed Growth (revenue 5y +6.9 %/yr)
!Thin margins · 4.9% net margin
!Mixed vs. peers (8/14)
!Narrow moat 43/100
!Weak on future: 6 out of 100

For context

·3.04% dividend yield
Evidence: High Range £20.61 – £38.45

Fair value as of: Aug 27, 2026

From 26 valuation models · updated 8 days ago

Share price −1.6% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • Solid quality (65/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (£20.61 to £38.45) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

£25.25 £10.90 Fair Value £30.76 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.

How to read this chart

60‑month range £10.90 – £25.25 · fair‑value band £20.61 – £38.45 · the £20.72 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 Aug 27, 2026.

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Analysis

Associated British Foods PLC (ABF) currently trades at £20.72, while our model-based Fair Value estimate is £30.76, implying the stock looks roughly 32.6% undervalued today. The Quality Score stands at 65/100 (solid quality), in the Consumer Defensive sector. Bull case: the Multiples group reads highest at a median of £30.76 per share, and 20 of the 26 models we run sit above the £20.72 price. Bear case: the Earnings-Based group reads lowest at £7.66, and 6 of the 26 models stay below the price. Evidence for this calculation is high.

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 Aug 27, 2026

Our scenario range runs from £20.61 (bear case) to £38.45 (bull case); at £20.72, the current price sits within 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 −27% fair-value upside, at 48%, ABF screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 12 months have passed since. In that time the company retained roughly £0.7000 per share, which is 2.3 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

Model 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. Evidence
Highest evidence
FCF DCF best evidence £19.52 £28.50 £41.76 78
Growth DCF £19.94 £28.08 £39.48 76
Residual Income £13.71 £15.03 £19.87 76
All 26 models by family
DCF Models
FCF DCF best evidence £19.52 £28.50 £41.76 78
Owner Earnings £15.87 £23.04 £33.61 74
5Y Revenue Exit £20.82 £32.11 £46.29 70
5Y EBITDA Exit £28.65 £46.39 £66.72 72
5Y P/E Exit £21.03 £32.50 £44.20 68
10Y Revenue Exit £19.54 £29.64 £42.71 64
10Y EBITDA Exit £25.11 £39.42 £57.94 65
10Y P/E Exit £20.30 £29.91 £41.15 62
Earnings-Based
Graham-Dodd £9.96 £27.15 £35.60 65
Lynch FV £5.36 £7.66 £9.96 61
PEG = 1.0 £5.36 £7.66 £9.96 57
EPV £18.67 £21.53 £24.03 70
Dividend Discount
Gordon GGM £8.61 £17.90 £28.39 66
DDM Multi-Stage £8.61 £13.46 £18.62 66
Multiples
P/E Multiple £23.07 £30.76 £38.45 63
P/S Multiple £18.67 £24.90 £31.12 58
P/B Multiple £18.67 £24.90 £31.12 55
EV/EBIT £31.19 £41.08 £50.97 63
EV/EBITDA £37.97 £50.12 £62.28 64
EV/Revenue £22.69 £31.77 £40.85 51
Asset-Based
NCAV (Graham) £7.90 £10.59 £15.80 51
Growth DCF
Growth DCF £19.94 £28.08 £39.48 76
Rev-Margin DCF £20.82 £32.17 £44.75 70
Economic Profit
Residual Income £13.71 £15.03 £19.87 76
ROIC Compounder £19.22 £23.67 £29.00 70
Growth Earnings
Growth-Adj P/E £18.26 £26.08 £33.90 67

Widest divergence: Multiples (£30.76) versus Earnings-Based (£7.66). Highest evidence: FCF DCF (78).

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Key figures & financial health

P/E ratio 15.6
P/S ratio 0.82 P/E × margin
EPS (TTM) £1.33 price ÷ EPS = P/E 15.6
Dividend yield 3.0% payout 47.4%
Net margin 5.3% FY2025
Return on equity 8.5% TTM
More key figures
Profitability
Return on assets (EBIT) 7.3% avg 5y
Operating margin 8.3% TTM
Growth
Revenue (TTM) £19.4B TTM
Revenue growth (YoY) +1.1% 3y avg +4.6%
EPS growth (YoY) −6.3%
Balance sheet & cash flow
Free cash flow 1.1B GBX FY2025
Net debt 2.6B GBX FY2025 · ≈ 2.3 yrs of FCF

Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 65/100

Of which business quality 64 · Market factors (momentum, volatility) 55

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 74
Calm price path (market factor)
Momentum 49
Price trend over the last 3–12 months (market factor)
52W Momentum 46
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

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. revenue growth/yr (3Y) 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.
+4.6%
Avg. revenue growth/yr (5Y) 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.
+6.9%
Avg. revenue growth/yr (39Y) 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.
+4.8%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+21.5% (18.5 + 3.0)
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
Character of growth · EPS growth decomposed (2014-2025) +6.5 % p.a.
Revenue per share +5.3 %

of which total revenue +4.7 % · buybacks/dilution +0.6 %

EBIT margin +0.5 %
Tax rate +0.0 %
Residual (interest, one-offs) +0.6 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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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 · 648 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 65 · Top 25%
Fair Value upside +49% · 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) 3.0% · Above median

Valuation Multiples vs Packaged Foods median · lower = cheaper

P/E (TTM) 15.6× · Cheaper than median
P/B 1.76× · Pricier than median
P/S (TTM) 1.00× · Pricier than median
P/FCF 17.0× · Pricier than 75% of peers
EV/EBITDA 8.3× · Pricier than median
PEG 2.50× · Pricier than 75% of peers

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE98 · sector 25
FUTURE6 · sector 21
PAST34 · sector 28
HEALTH0 · sector 96
DIVIDEND61 · sector 53

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

Similar stocks

10 more Packaged Foods stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).

Stock Price Fair Value vs Fair Value
Nestlé S.A NESN CHF 78.62 CHF 57.26 −27%
Danone S.A BN €64.28 €48.41 −25%
Nestlé India Limited NESTLEIND ₹1,478 ₹251.94 −83%
The Kraft Heinz Company KHC $25.13 $24.59 −2%
Foshan Haitian Flavouring and Food Company 603288 ¥35.05 ¥21.93 −37%
Inner Mongolia Yili Industrial Group 600887 ¥25.51 ¥32.50 +27%
Yihai Kerry Arawana Holdings 300999 ¥25.28 ¥9.89 −61%
General Mills, Inc GIS $40.44 $28.32 −30%
Wilmar International Limited F34 3.64 SGD 3.89 SGD +7%
Britannia Industries Limited BRITANNIA ₹5,511 ₹1,765 −68%

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Frequently asked questions

Is Associated British Foods PLC (ABF) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of £30.76 versus a price of £20.72, about +48% upside (undervalued).
What is the fair value of ABF?
Our model-based fair value for Associated British Foods PLC is £30.76 (as of Aug 27, 2026), built from audited fundamentals. The current price: £20.72.
What is the quality score of ABF?
Associated British Foods 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 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 Aug 27, 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 3.04% relative to its recent price (as of Aug 27, 2026).
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