---
title: "A Look At H & M Hennes & Mauritz (OM:HM B) Valuation As Signals On Fair Value Diverge"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/284705512.md"
description: "H & M Hennes & Mauritz (OM:HM B) has seen a recent decline in share price, down 3% over the past week and 10.8% year-to-date, despite a 1-year total return of 23.4%. Analysts suggest the stock is about 1% overvalued with a fair value of SEK 163.42, while a discounted cash flow model indicates it could be undervalued at SEK 332.39. Mixed signals on valuation and sentiment suggest investors should closely evaluate the company's fundamentals and market conditions before making decisions."
datetime: "2026-04-30T06:10:30.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/284705512.md)
  - [en](https://longbridge.com/en/news/284705512.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/284705512.md)
---

# A Look At H & M Hennes & Mauritz (OM:HM B) Valuation As Signals On Fair Value Diverge

## Recent share performance and business snapshot

H & M Hennes & Mauritz (OM:HM B) has been under pressure recently, with the share showing a 3% decline over the past week and about a 4% decline over the past month.

Over the past 3 months, the stock is down roughly 6%, and year to date it shows a 10.8% decline, even though the 1 year total return is 23.4% and the 3 year total return is 27.5%.

The company reports annual revenue of SEK 222,559 and net income of SEK 12,292, with both revenue and net income showing positive annual growth based on the latest reported figures.

See our latest analysis for H & M Hennes & Mauritz.

The recent 1 day share price return of a 3% decline and a 7 day return of a 5% decline suggest near term momentum is fading, even though the 1 year total shareholder return of 23.4% still reflects a stronger longer term picture.

If you are comparing H & M Hennes & Mauritz with other opportunities in the market, this could be a good moment to broaden your search and check out the 97 top founder-led companies

With H & M Hennes & Mauritz trading at SEK 165.20 and an indicated intrinsic value gap alongside mixed recent returns, is the market overlooking potential upside here or already factoring in the company’s future growth?

## Most Popular Narrative: 1% Overvalued

Compared with the last close at SEK 165.20, the most followed narrative points to a fair value of SEK 163.42, built on detailed assumptions about growth, margins and valuation multiples.

> _The analysts have a consensus price target of SEK163.42 for H & M Hennes & Mauritz based on their expectations of its future earnings growth, profit margins and other risk factors._
> 
> _However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of SEK200.0, and the most bearish reporting a price target of just SEK123.0._

Read the complete narrative.

Want to see what sits behind that tight gap between price and fair value? Revenue pacing, margin uplift and the future earnings multiple all play a central role.

**Result: Fair Value of SEK163.42 (OVERVALUED)**

Have a read of the narrative in full and understand what's behind the forecasts.

However, rising inventory and purchasing costs, together with weaker sales in key markets, could still upset these fair value assumptions and shift sentiment quickly.

Find out about the key risks to this H & M Hennes & Mauritz narrative.

## Another angle on value

The analyst fair value of SEK 163.42 suggests H & M Hennes & Mauritz is about 1% overvalued, yet the SWS DCF model points the other way, with the shares trading at 50.3% below its estimate of future cash flow value of SEK 332.39. Which signal do you trust more: price targets or cash flows?

Look into how the SWS DCF model arrives at its fair value.

HM B Discounted Cash Flow as at Apr 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out H & M Hennes & Mauritz for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 232 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

## Next Steps

The mixed messages on value and sentiment make this a moment to look closely at the details yourself, weigh both sides, and act before views shift around the 3 key rewards and 1 important warning sign

## Looking for more investment ideas?

If H & M Hennes & Mauritz has caught your attention, do not stop here; broaden your watchlist now so you are not late to the next opportunity.

-   Target potential mispricing by scanning companies that combine strong fundamentals with appealing valuations using the 232 high quality undervalued stocks
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_This article by Simply Wall St is general in nature. **We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.** It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned._

### Valuation is complex, but we're here to simplify it.

Discover if H &amp; M Hennes &amp; Mauritz might be undervalued or overvalued with our detailed analysis, featuring **fair value estimates, potential risks, dividends, insider trades, and its financial condition.**

Access Free Analysis

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