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Imperial Brands PLC (IMB) Fair Value & Analysis

Consumer Defensive · GB · Market cap 20.6B GBX · ISIN GB0004544929

What is Imperial Brands PLC really worth?

IB Imperial Brands PLC IMB · LSE
Price£24.89
Fair Value£54.51
Upside+119.0%
Quality66/100

A solid business, trading 54% below our fair value of £54.51.

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Strengths

✓Ranks above peers (10/15)
✓Wide moat 66/100

Risks

!Weak Growth (revenue 5y −0.2 %/yr)
!Thin margins · 9.0% net margin
!High debt · generates free cash flow
!Weak on future: 25 out of 100
!Weak on balance sheet: 12 out of 100

For context

·8.25% dividend yield
Evidence: High Range £31.41 – £71.03

Fair value as of: Aug 27, 2026

From 26 valuation models · updated 8 days ago

Share price −9.4% over the past month.

What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

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

What matters now

  • The price is below even our cautious bear case (£31.41). The market is more pessimistic than our downside scenario.
  • Solid quality (66/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (£31.41 to £71.03) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

£32.28 £10.52 Fair Value £54.51 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 £10.52 – £32.28 · fair‑value band £31.41 – £71.03 · the £24.89 price screens below the £54.51 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

Imperial Brands PLC (IMB) currently trades at £24.89, while our model-based Fair Value estimate is £54.51, implying the stock looks roughly 54.3% undervalued today. The Quality Score stands at 66/100 (solid quality), in the Consumer Defensive sector. Bull case: the Growth DCF group reads highest at a median of £51.91 per share, and 22 of the 26 models we run sit above the £24.89 price. Bear case: the Earnings-Based group reads lowest at £14.75, and 4 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Imperial Brands PLC generated revenue of £19.4B at a net margin of 9.0%. Revenue grew 4.9% year over year. It earns a return on equity of 37.2%. Net debt stands at £8.6B. Fundamentals as of Aug 27, 2026

Our scenario range runs from £31.41 (bear case) to £71.03 (bull case); at £24.89, 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 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. For context, the median of 10 Consumer Defensive peers we cover trades at −18% fair-value upside, at 119%, IMB screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 11 months have passed since. In that time the company retained roughly £0.0704 per share, which is 0.1 % 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 £32.03 £53.03 £84.17 79
Growth DCF £32.96 £51.91 £78.53 78
Owner Earnings £24.94 £42.33 £68.12 75
All 26 models by family
DCF Models
FCF DCF £32.03 £53.03 £84.17 79
Owner Earnings £24.94 £42.33 £68.12 75
5Y Revenue Exit £30.73 £53.36 £81.76 71
5Y EBITDA Exit £35.68 £62.43 £92.98 74
5Y P/E Exit £29.69 £51.45 £73.69 70
10Y Revenue Exit £29.59 £50.17 £76.81 66
10Y EBITDA Exit £33.95 £56.40 £85.21 67
10Y P/E Exit £30.16 £48.86 £70.77 63
Earnings-Based
Graham-Dodd £18.40 £51.33 £67.47 65
Lynch FV £10.32 £14.75 £19.17 61
PEG = 1.0 £10.32 £14.75 £19.17 57
EPV £22.86 £28.21 £32.89 74
Dividend Discount
Gordon GGM £18.69 £38.86 £61.65 66
DDM Multi-Stage £18.69 £29.51 £40.78 66
Multiples
P/E Multiple £42.62 £56.82 £71.03 63
P/S Multiple £34.50 £46.00 £57.50 58
P/B Multiple £26.00 £34.66 £43.33 55
EV/EBIT £48.86 £68.24 £87.61 66
EV/EBITDA £43.86 £61.57 £79.28 67
EV/Revenue £32.22 £50.00 £67.78 53
Asset-Based
NCAV (Graham) £3.15 £4.22 £6.30 54
Growth DCF
Growth DCF £32.96 £51.91 £78.53 78
Rev-Margin DCF £30.73 £53.56 £79.07 72
Economic Profit
Residual Income £15.94 £19.27 £84.73 64
ROIC Compounder £24.77 £33.17 £42.62 72
Growth Earnings
Growth-Adj P/E £33.97 £48.53 £63.09 67

Widest divergence: Growth DCF (£51.91) versus Asset-Based (£4.22). Highest evidence: FCF DCF (79).

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Key figures & financial health

P/E ratio 11.7
P/S ratio 0.75 P/E × margin
EPS (TTM) £2.13 price ÷ EPS = P/E 11.7
Dividend yield 8.3% payout 96.4%
Net margin 6.4% FY2025
Return on equity 37.2% TTM
More key figures
Profitability
Return on assets (EBIT) 11.6% avg 5y
Operating margin 16.0% TTM
Growth
Revenue (TTM) £19.4B TTM
Revenue growth (YoY) +4.9% 3y avg −0.4%
EPS growth (YoY) −38.2%
Balance sheet & cash flow
Free cash flow 2.9B GBX FY2025
Net debt 8.6B GBX FY2025 · ≈ 3.0 yrs of FCF

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

Quality Score breakdown

Overall quality 66/100

Of which business quality 60 · Market factors (momentum, volatility) 41

Profitability 63
Margins and returns on capital today
Quality Growth 37
Are margins and returns improving?
Cashflow 62
Earnings quality: real cash, not paper profit
Fin. Strength 24
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 92
Calm price path (market factor)
Momentum 26
Price trend over the last 3–12 months (market factor)
52W Momentum 8
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

Imperial Brands PLC, together with its subsidiaries, manufactures, imports, markets, and sells tobacco and tobacco-related products in Europe, the Americas, Africa, the Asia, Australasia, and internationally. It offers a range of cigarettes, tobacco accessories, vapour, heated tobacco, and oral nicotine.

Full company description

Imperial Brands PLC, together with its subsidiaries, manufactures, imports, markets, and sells tobacco and tobacco-related products in Europe, the Americas, Africa, the Asia, Australasia, and internationally. It offers a range of cigarettes, tobacco accessories, vapour, heated tobacco, and oral nicotine. The company sells its products under various brands, including JPS, Davidoff, Gauloises, West, Winston, Kool, Lambert & Butler, P&S, Fortuna, Nobel, News, Backwoods, Champion, Golden Virginia, FINE, Rizla, Blu, Pulze, Skruf, and Zone. In addition, it engages in the distribution of tobacco and NGP products for tobacco and NGP product manufacturers; and various non-tobacco and NGP products and services. Further, the company is involved in the management of a golf course; distribution of pharmaceuticals, POS software, and published materials and other products; printing and publishing activities; and provision of long haul transportation, industrial parcel and express delivery, pharmaceutical products logistics, advertising, payment, freight forwarding, and support management services, as well as owns the trademarks; and retails its products. Additionally, it engages in edition and distribution of books and non-periodical publication. Furthermore, the company is involved in research and development of e-vapour products. The company was formerly known as Imperial Tobacco Group PLC and changed its name to Imperial Brands PLC in February 2016. Imperial Brands PLC was founded in 1636 and is based in Bristol, the United Kingdom.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Imperial Brands PLC reported revenue of £32.2B in FY2025 versus £32.8B in FY2021, a compound −0.5%/yr. Reported net income was £2.1B in FY2025, compounding −7.5%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
£32.2B
Latest YoY
−0.7%
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.
−0.4%
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.
−0.2%
Avg. revenue growth/yr (34Y) ⓘ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.
+7.6%
Value creation/yr (5Y) ⓘEarnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+17.8% (9.5 + 8.3)
Revenue −0.5%/yr
FY21 £32.8B
FY22 £32.6B
FY23 £32.5B
FY24 £32.4B
FY25 £32.2B
Net income −7.5%/yr
FY21 £2.8B
FY22 £1.6B
FY23 £2.3B
FY24 £2.6B
FY25 £2.1B
Character of growth · EPS growth decomposed (2014-2025) +8.3 % p.a.
Revenue per share +3.3 %

of which total revenue +2.3 % · buybacks/dilution +1.0 %

EBIT margin +3.6 %
Tax rate −1.6 %
Residual (interest, one-offs) +2.9 %

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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Imperial Brands PLC · Fair Value
£54.51 +54%Fair Value
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Cite: Fair Value Calculator (2026). "Imperial Brands PLC Fair Value". https://www.fairvalue-calculator.com/stock/IMB

Peer Group

Tobacco · 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 66 · Above median
Fair Value upside +119% · Top 25%
Return on equity (TTM) 37% · Top 25%
Return on assets 8% · Above median
Net margin (TTM) 9% · Below median
Operating margin (TTM) 16% · Above median
Revenue growth 5% · Above median
Dividend yield (TTM) 8.3% · Top 25%
Debt / equity 1.77× · Higher than 75% of peers

Valuation Multiples vs Tobacco median · lower = cheaper

P/E (TTM) 11.7× · Cheaper than median
P/B 5.79× · Pricier than 75% of peers
P/S (TTM) 1.44× · Pricier than median
P/FCF 9.8× · Pricier than median
EV/EBITDA 8.7× · Cheaper than median
PEG 0.81× · Cheaper 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
VALUE100 · sector 38
FUTURE25 · sector 25
PAST100 · sector 51
HEALTH12 · sector 97
DIVIDEND100 · sector 78

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Tobacco

Similar stocks

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

Stock Price Fair Value vs Fair Value
Philip Morris International Inc PM $190.48 $103.71 −46%
British American Tobacco p.l.c. BTI $56.13 $61.07 +9%
Altria Group MO $68.65 $81.81 +19%
ITC Limited 500875 ₹279.50 ₹212.74 −24%
KT&G Corporation 033780 175,500 KRW 110,656 KRW −37%
PT Hanjaya Mandala Sampoerna Tbk, HMSP 745.00 IDR 1,041 IDR +40%
Smoore International Holdings 6969 HK$9.24 HK$4.19 −55%
Godfrey Phillips India Limited GODFRYPHLP ₹2,160 ₹1,194 −45%
PT Gudang Garam Tbk, GGRM 20,675 IDR 16,988 IDR −18%
TABAK TABAK 19,100 CZK 23,215 CZK +22%

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Frequently asked questions

Is Imperial Brands PLC (IMB) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of £54.51 versus a price of £24.89, about +119% upside (undervalued).
What is the fair value of IMB?
Our model-based fair value for Imperial Brands PLC is £54.51 (as of Aug 27, 2026), built from audited fundamentals. The current price: £24.89.
What is the quality score of IMB?
Imperial Brands PLC has a Quality Score of 66/100. 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 Imperial Brands PLC (IMB)?
Imperial Brands 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 IMB?
The net profit margin of Imperial Brands PLC is about 9.0%, meaning it keeps roughly 9.0% of revenue as net income. Based on the latest reported figures.
Does Imperial Brands PLC pay a dividend?
Imperial Brands PLC currently shows a dividend yield of about 8.25% relative to its recent price (as of Aug 27, 2026).
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