H & M Hennes & Mauritz AB (publ) (HM-B.ST) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+41.2%

SEK 249.79

vs SEK 176.95 price

Levered DCF

SEK 197.75

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.71

Grey zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	23.23×	20.98×	31.27×	54.01×	24.06×	242.13×	22.76×	21.94×
P/B	6.58×	5.28×	5.76×	3.79×	4.41×	5.5×	5.36×	4.74×
P/S	1.24×	1.04×	1.16×	0.86×	1.33×	1.61×	1.31×	1.32×
EV / EBITDA	9.74×	7.49×	8.53×	8.14×	8.09×	12.53×	10.96×	11.22×
Gross margin	45.4%	53.4%	51.2%	50.7%	52.8%	50.0%	52.6%	52.7%
Operating margin	8.1%	7.4%	6.2%	3.2%	7.7%	1.7%	7.5%	7.4%
Net margin	5.3%	5.0%	3.7%	1.6%	5.5%	0.7%	5.8%	6.0%
Current ratio	1.18×	1.14×	1.19×	1.16×	1.29×	1.16×	1.3×	1.39×
Debt / equity	2.85×	1.67×	1.64×	1.43×	1.11×	1.47×	0.31×	0.34×
Interest coverage	6.98×	6.29×	6.78×	6.43×	13.17×	2.39×	52.4×	106.12×
Dividend yield	3.9%	4.3%	3.9%	5.6%	4.1%	0.0%	5.3%	5.8%
Payout ratio	89.7%	90.0%	120.9%	299.7%	97.7%	0.0%	120.0%	127.5%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	28.3%	25.2%	18.4%	7.0%	18.3%	2.3%	23.6%	21.6%
Return on invested capital	11.2%	10.3%	7.6%	3.2%	9.0%	1.3%	16.8%	14.9%
Return on assets	7.1%	6.4%	4.8%	2.0%	6.1%	0.7%	11.2%	10.7%
Free cash flow yield	7.7%	8.3%	9.1%	9.6%	15.5%	6.9%	6.1%	3.0%
Earnings yield	4.3%	4.8%	3.2%	1.9%	4.2%	0.4%	4.4%	4.6%
Enterprise value	SEK 383.9B	SEK 303.4B	SEK 325.1B	SEK 243.4B	SEK 304B	SEK 364.1B	SEK 311.3B	SEK 285.6B
Net debt / EBITDA	2.58×	1.47×	1.35×	1.7×	1.04×	2.19×	0.19×	0.32×
Cash conversion cycle (days)	63	71	57	89	83	126	114	130