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H & M Hennes & Mauritz AB (HM-B) Fair Value & Analysis

Consumer Cyclical · SE · Market cap 262B SEK

HM H & M Hennes & Mauritz AB HM-B · ST
Pricekr 175.10
Fair Valuekr 165.47
Upside-5.5%
Quality72/100
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Mixed Growth
Thin margins · 5.6% net margin
Low debt · generates free cash flow
4.34% dividend yield
Mixed vs. peers (6/15)
Moderate moat 63/100
Evidence: High Range kr 110.57 – kr 224.94 Share as image

Fair value as of: Aug 13, 2026

From 24 valuation models · updated yesterday

Share price +8.2% over the past month.

A solid business, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • A fairly wide model range (kr 110.57 to kr 224.94) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

kr 190.08 kr 83.51 Fair Value kr 165.47 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range kr 83.51 – kr 190.08 · fair‑value band kr 110.57 – kr 224.94 · the kr 175.10 price screens above the kr 165.47 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

H & M Hennes & Mauritz AB (HM-B) currently trades at kr 175.10, while our model-based Fair Value estimate is kr 165.47, implying the stock looks roughly 5.5% fairly valued today. The Quality Score stands at 72/100 (solid quality), in the Consumer Cyclical sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, H & M Hennes & Mauritz AB generated revenue of 223B SEK at a net margin of 5.5%. Revenue declined 10.3% year over year. It earns a return on equity of 27.9%. Net debt stands at 102B SEK. Fundamentals as of Aug 13, 2026

Our scenario range runs from kr 110.57 (bear case) to kr 224.94 (bull case); at kr 175.10, 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. The share trades about 8% below its 52-week high and 47% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 27% fair-value upside, at -6%, HM-B screens richer 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 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
Growth DCF kr 188.45 kr 278.43 kr 411.35 80
Residual Income kr 61.26 kr 84.29 kr 583.85 76
Rev-Margin DCF kr 138.94 kr 209.63 kr 289.05 74
All 24 models by family
DCF Models
FCF DCF kr 183.64 kr 282.46 kr 436.39 38
Owner Earnings kr 195.81 kr 301.24 kr 465.47 31
5Y Revenue Exit kr 138.94 kr 207.99 kr 293.73 39
5Y EBITDA Exit kr 209.66 kr 337.52 kr 483.91 41
5Y P/E Exit kr 147.24 kr 223.20 kr 300.52 38
10Y Revenue Exit kr 149.38 kr 216.25 kr 301.37 36
10Y EBITDA Exit kr 198.85 kr 307.22 kr 447.03 37
10Y P/E Exit kr 158.49 kr 226.93 kr 306.57 35
Earnings-Based
Graham-Dodd kr 58.97 kr 164.16 kr 215.76 54
Lynch FV kr 32.96 kr 47.09 kr 61.22 50
PEG = 1.0 kr 32.96 kr 47.09 kr 61.22 46
EPV kr 104.64 kr 122.78 kr 138.90 59
Multiples
P/E Multiple kr 143.09 kr 190.79 kr 238.48 63
P/S Multiple kr 110.57 kr 147.43 kr 184.28 58
P/B Multiple kr 91.84 kr 122.46 kr 153.07 55
EV/EBIT kr 180.26 kr 239.73 kr 299.21 53
EV/EBITDA kr 251.91 kr 335.27 kr 418.63 54
EV/Revenue kr 122.11 kr 173.65 kr 225.20 43
Asset-Based
NCAV (Graham) kr 15.31 kr 20.51 kr 30.61 50
Growth DCF
Growth DCF kr 188.45 kr 278.43 kr 411.35 80
Rev-Margin DCF kr 138.94 kr 209.63 kr 289.05 74
Economic Profit
Residual Income kr 61.26 kr 84.29 kr 583.85 76
ROIC Compounder kr 109.89 kr 135.68 kr 163.59 72
Growth Earnings
Growth-Adj P/E kr 113.53 kr 162.18 kr 210.83 68

Widest divergence: DCF Models (kr 226.93) versus Asset-Based (kr 20.51). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 221B SEK
Revenue growth (YoY) -3.3%
Net margin 5.6%
Return on equity 34.7%
Free cash flow 21.9B SEK FY2025
P/E ratio 21.3 as of Jul 17, 2026
More key figures
Operating margin 11.0%
EPS (TTM) kr 7.68
Dividend yield 4.3%
EPS growth (YoY) +0.7%
Net debt 102B SEK FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 72/100

Of which business quality 69 · Market factors (momentum, volatility) 63

Profitability 76
Margins and returns on capital today
Quality Growth 37
Are margins and returns improving?
Cashflow 65
Earnings quality: real cash, not paper profit
Fin. Strength 58
Balance sheet, leverage, solvency risk
Investment 96
Disciplined investing over empire-building
Low Volatility 70
Calm price path (market factor)
Momentum 52
Price trend over the last 3–12 months (market factor)
52W Momentum 74
Distance to the 52-week high (market factor)
Net Issuance 89
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

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children worldwide.

Full company description

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children worldwide. It offers sportswear, shoes, bags, accessories, ready-to-wear, activewear, and jeans; interior products, including bed linens, towels and tablecloths, tableware, furniture, and lighting; and beauty products, such as make-up and fragrance collections. The company provides its products under the H&M, H&M HOME, H&M Move, H&M Beauty, COS, Cheap Monday, Weekday, Monki, & Other Stories, ARKET, and Singular Society brand names. In addition, it operates Sellpy, a broad digital platform for second-hand fashion and other products; Smartex.ai, a platform that detects faults in real time and helps in textile production; Syre, a platform which focuses on scaling textile-to-textile recycling primarily polyester; and A Retro Tale offers selected vintage and secondhand accessories, as well as provides collecting and sorting solutions to extend the useful life of no longer used garments through reuse and recycling under Looper Textile name. Further, the company operates seasonal vegetarian cafés and coffee shops. It offers its products through online and physical stores. H & M Hennes & Mauritz AB (publ) was incorporated in 1943 and is headquartered in Stockholm, Sweden.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

H & M Hennes & Mauritz AB reported revenue of kr 228B in FY2025 versus kr 199B in FY2021, a compound +3.5%/yr. Reported net income was kr 12.2B in FY2025, compounding +2.5%/yr from FY2021.

Growth Quality 66/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
228B SEK
Latest YoY
−2.6%
Avg. 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.
+0.7%
Avg. 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.
+4.1%
Avg. growth/yr (21Y) 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.
+7.1%
Revenue +3.5%/yr
FY21 kr 199B
FY22 kr 224B
FY23 kr 236B
FY24 kr 234B
FY25 kr 228B
Net income +2.5%/yr
FY21 kr 11.0B
FY22 kr 3.6B
FY23 kr 8.8B
FY24 kr 11.6B
FY25 kr 12.2B
Character of growth · EPS growth decomposed (2014-2025) −6.2 % p.a.
Revenue per share +3.5 pp

of which total revenue +3.2 pp · buybacks/dilution +0.3 pp

EBIT margin −7.5 pp
Tax rate −0.7 pp
Residual (interest, one-offs) −1.6 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "H & M Hennes & Mauritz AB Fair Value". https://www.fairvalue-calculator.com/stock/HM-B

Peer Group

Apparel Manufacturing · 213 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 72 · Top 25%
Fair Value upside −6% · Below median
Return on equity (TTM) 35% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 6% · Above median
Operating margin (TTM) 11% · Above median
Revenue growth -3% · Below median
Dividend yield (TTM) 4.3% · Above median
Debt / equity 0.43× · Higher than 75% of peers

Valuation Multiples vs Apparel Manufacturing median · lower = cheaper

P/E (TTM) 21.3× · Pricier than median
P/B 6.10× · Pricier than 75% of peers
P/S (TTM) 1.19× · Pricier than median
P/FCF 1.3× · Pricier than median
EV/EBITDA 10.8× · Pricier than median
PEG 2.59× · Pricier 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 26 · sector 32
FUTURE 0 · sector 5
PAST 100 · sector 21
HEALTH 79 · sector 98
DIVIDEND 87 · sector 50

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 Apparel Manufacturing stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Ralph Lauren Corporation RL $396.35 $220.38 -44%
LPP SA LPP 22,220 PLN 17,754 PLN -20%
Bosideng International Holdings 3998 HK$4.65 HK$5.92 +27%
Youngor Fashion Co 600177 ¥7.78 ¥5.59 -28%
Page Industries Limited PAGEIND ₹38,295 ₹12,395 -68%
Hla Group 600398 ¥6.07 ¥9.92 +63%
Youngone Corporation 111770 85,200 KRW 188,736 KRW +122%
F&F Co 383220 68,800 KRW 179,500 KRW +161%
Youngone Holdings 009970 188,300 KRW 697,038 KRW +270%
Wiselink Co 8932 105.00 TWD 37.95 TWD -64%

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Frequently asked questions

Is H & M Hennes & Mauritz AB (HM-B) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of kr 165.47 versus a price of kr 175.10, about −6% (fairly valued).
What is the fair value of HM-B?
Our model-based fair value for H & M Hennes & Mauritz AB is kr 165.47 (as of Aug 13, 2026), built from audited fundamentals. The current price is kr 175.10.
What is the quality score of HM-B?
H & M Hennes & Mauritz AB has a Quality Score of 72/100. 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 H & M Hennes & Mauritz AB (HM-B)?
H & M Hennes & Mauritz AB reported trailing-twelve-month revenue of about 223B SEK (latest available figure, as of Aug 13, 2026).
What is the net profit margin of HM-B?
The net profit margin of H & M Hennes & Mauritz AB is about 5.5%, meaning it keeps roughly 5.5% of revenue as net income. Based on the latest reported figures.
Does H & M Hennes & Mauritz AB pay a dividend?
H & M Hennes & Mauritz AB currently shows a dividend yield of about 4.28% relative to its recent price (as of Aug 13, 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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