Associated British Foods plc
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 Penney…
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.Priced within the modelled range
5-year outlook: Not shown because confidence is low: Earnings-based DCF is somewhat apart.
Other models: GBP 19.86–37.58 (median 23.18). The recommended value is in line with them.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Details and the full model are below.
Market price within modeled range
Free-cash-flow DCF using Fiscal year 2026 reported free cash flow, with cash, debt, and shares from the latest report. Base assumptions are 3.51% growth, 2.4% terminal growth, and 9.2% discount. Low/high cases vary growth by 2 and terminal growth/discount by 1 percentage point; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 3.51%, discount rate 9.20%, terminal growth 2.40% (sector defaults). See a worked example.
Blended growth assumption: 3.5% (sector default 5.3%, own revenue history 3.6%, analyst revenue consensus 2.6%).
Analyst consensus expects revenue growth of 2.6% a year; the growth assumption used is 3.5%.
Adjust assumptions
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — GBP 24.51 (+23.6%)
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EPS-based Gordon proxy
— GBP 19.86 (+0.2%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— GBP 24.51 (+23.6%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— GBP 23.18 (+16.9%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
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EV/EBITDA (12x)
— GBP 37.58 (+89.5%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
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Fade DCF (10-year growth fade)
— GBP 24.46 (+23.4%)
Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
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EV/Sales (Rule of 40)
— GBP 84.83 (+327.8%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear GBP 16.89 | -17.4% |
| Base GBP 24.51 | 19.1% |
| Bull GBP 38.67 | 48.7% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At GBP 19.83 the market implies about this annual free-cash-flow growth for 5 years (terminal 2.4%, discount 9.2%).
Compare: the market implies -0.6% a year, this model assumes 3.5%. The model is more optimistic than the price, which is why it reads as undervalued.
How the Free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 7.2% | 8.2% | 9.2% | 10.2% | 11.2% |
|---|---|---|---|---|---|
| -0.5% | 29.81 | 24.04 | 19.96 | 16.93 | 14.59 |
| 1.5% | 33.01 | 26.65 | 22.15 | 18.81 | 16.23 |
| 3.5% | 36.47 | 29.46 | 24.51 | 20.83 | 17.99 |
| 5.5% | 40.19 | 32.48 | 27.04 | 23.00 | 19.88 |
| 7.5% | 44.19 | 35.73 | 29.76 | 25.33 | 21.91 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 82 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue +3.6% a year | 12 / 20 |
| Balance sheet | net debt 1.2x EBITDA | 20 / 20 |
| Margins | EBITDA margin 12% | 10 / 20 |
Peers in Consumer Staples
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| ABF.L (this company) | GBP 19.83 | 19.1% | 15.0 | 1.2 | 3.2% | 82 |
| ORK.OL Orkla ASA | NOK 103.30 | 31.4% | 14.7 | 2.4 | 9.7% | 82 |
| WN.TO George Weston Limited | CAD 109.72 | 26.2% | 39.8 | 9.1 | 1.2% | 72 |
| KHC Kraft Heinz | USD 25.32 | 25.2% | – | 0.8 | 6.3% | 36 |
| CA.PA Carrefour SA | EUR 13.59 | 24.1% | 29.1 | 0.8 | 8.7% | 72 |
| ADM Archer Daniels Midland | USD 70.47 | 16.8% | 13.7 | 1.4 | 3.0% | 64 |
| AXFO.ST Axfood AB | SEK 281.90 | 8.5% | 24.8 | 8.1 | 3.1% | 70 |
| DLTR Dollar Tree | USD 137.94 | 0.3% | 16.3 | 7.7 | – | 72 |
| CCH.L Coca-Cola HBC AG | GBP 41.18 | -0.8% | 19.4 | 4.7 | 2.1% | 90 |
| Peer median | 19.4 | 3.5 | ||||
Dividends
Paid in the last 12 months: GBP 0.01 per share · yield 0.03% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 0.002 |
| 2025 | 0.006 |
| 2024 | 0.009 |
| 2023 | 0.006 |
| 2022 | 0.004 |
| 2021 | 0.004 |
Annual financial statement
Saved annual report · Fiscal year 2026 · EODHD annual statements · period ended 30 Sep 2026
| Revenue | GBP 19,582,000,000 |
|---|---|
| EBITDA | GBP 2,445,000,000 |
| EBIT | GBP 1,391,000,000 |
| Net income | GBP 930,000,000 |
| Free cash flow | GBP 1,274,000,000 |
| Capital expenditures | GBP 1,162,000,000 |
| Debt | GBP 3,853,000,000 |
| Cash | GBP 1,010,000,000 |
| Working capital | GBP 2,092,000,000 |
| Shares outstanding | 705,000,000 |
| Reported dividends per share | GBP 0.6326 |