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?
A solid business, trading 33% below our fair value of £30.76.
Strengths
Risks
For context
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)
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.
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.
All 26 models by family
Widest divergence: Multiples (£30.76) versus Earnings-Based (£7.66). Highest evidence: FCF DCF (78).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 64 · Market factors (momentum, volatility) 55
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.
of which total revenue +4.7 % · buybacks/dilution +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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Earlier news
External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
- ABF renames UK bread arm after clinching Hovis deal
- Sugar woes sour ABF shares
- UK watchdog clears ABF’s deal to buy bread rival Hovis
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.
Valuation Multiples vs Packaged Foods median · lower = cheaper
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.
Insider activity: 40/100
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
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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