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H & M Hennes & Mauritz ABFRA:HMSB +1.34%73 EV-to-OCF is 9.95 as of Aug. 26, 2026, which is 6% below its 10-year median of 10.64. GuruFocus rates FRA:HMSB with a GF Score™ of 73/100 and a GF Value™ of €14.24 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,069 Manufacturing - Apparel & Accessories companies, H & M Hennes & Mauritz AB ranks worse than 59.96% on this metric.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
H & M Hennes & Mauritz AB (FRA:HMSB) EV-to-OCF Explanation
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
H & M Hennes & Mauritz AB's PE Ratio (TTM) for today is calculated as:
H & M Hennes & Mauritz AB's share price for today is €16.61.
H & M Hennes & Mauritz AB's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €0.698.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
H & M Hennes & Mauritz AB EV-to-OCF Related Terms
H & M Hennes & Mauritz AB EV-to-OCF Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Apparel Manufacturing subindustry, H & M Hennes & Mauritz AB's EV-to-OCF, along with its competitors' market caps and EV-to-OCF data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
H & M Hennes & Mauritz AB EV-to-OCF vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, H & M Hennes & Mauritz AB's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where H & M Hennes & Mauritz AB's EV-to-OCF falls into.
H & M Hennes & Mauritz AB's current Enterprise Value is €29,986 Mil.
H & M Hennes & Mauritz AB's Cash Flow from Operations for the trailing twelve months (TTM) ended in May. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €3,014 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
H & M Hennes & Mauritz AB (FRA:HMSB) has a EV-to-OCF of 9.95 as of Aug. 26, 2026. This is near median its historical median of 10.64. Over the past decade, H & M Hennes & Mauritz AB's EV-to-OCF has ranged from 5.72 to 18.91. According to the industry distribution chart, H & M Hennes & Mauritz AB ranks #641 out of 1069 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 60%.
Is H & M Hennes & Mauritz AB's EV-to-OCF too high?
H & M Hennes & Mauritz AB's current EV-to-OCF of 9.95 is near median its 10-year median of 10.64. Over the past 10 years, this metric has ranged from a low of 5.72 to a high of 18.91. The Manufacturing - Apparel & Accessories industry median EV-to-OCF is 7.27. H & M Hennes & Mauritz AB's value of 9.95 is 36.9% above this industry median. Based on the distribution chart, H & M Hennes & Mauritz AB ranks #641 out of 1069 companies in the Manufacturing - Apparel & Accessories industry, which is below the industry midpoint. Overall, H & M Hennes & Mauritz AB has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does H & M Hennes & Mauritz AB's EV-to-OCF compare to RL and LEVI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, H & M Hennes & Mauritz AB ranks #641 out of 1069 companies for EV-to-OCF. This places H & M Hennes & Mauritz AB in the lower half of its industry. The industry median EV-to-OCF is 7.27. H & M Hennes & Mauritz AB's value of 9.95 is 36.9% above this benchmark. Historically, H & M Hennes & Mauritz AB's own EV-to-OCF has ranged from 5.72 to 18.91 over the past decade. While the company's 10-year median is 10.64 vs. the industry median of 7.27, H & M Hennes & Mauritz AB has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-OCF for a Manufacturing - Apparel & Accessories company?
The median EV-to-OCF among Manufacturing - Apparel & Accessories companies is 7.27, based on 1,069 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. H & M Hennes & Mauritz AB's current EV-to-OCF of 9.95 is 36.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Manufacturing - Apparel & Accessories industry, the median EV-to-OCF is 7.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H & M Hennes & Mauritz AB's current EV-to-OCF is 9.95, which is near median its own 10-year median of 10.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is H & M Hennes & Mauritz AB stock overvalued right now?
Based on GuruFocus' analysis, H & M Hennes & Mauritz AB (FRA:HMSB) is currently considered Modestly Overvalued. The stock's GF Value™ is €14.24, compared to a current price of €16.61 — trading 16.6% above its estimated fair value. The current EV-to-OCF is 9.95, which is near median its 10-year median of 10.64 and 36.9% above the Manufacturing - Apparel & Accessories industry median of 7.27. H & M Hennes & Mauritz AB's overall GF Score™ is 73/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For H & M Hennes & Mauritz AB (FRA:HMSB), the current EV-to-OCF is 9.95 as of Aug. 26, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is H & M Hennes & Mauritz AB (FRA:HMSB) Overvalued in 2026?
Based on GuruFocus' analysis, H & M Hennes & Mauritz AB stock appears to be overvalued.
The current stock price of €16.61 is trading 16.6% above its estimated GF Value™ of €14.24.
GuruFocus considers H & M Hennes & Mauritz AB to be Modestly Overvalued.
Key valuation signals for FRA:HMSB:
EV-to-OCF: 9.95 (near median its 10-year median of 10.64)
GF Value™: €14.24 vs. price of €16.61 (16.6% above fair value)
Industry Position: 36.9% above the Manufacturing - Apparel & Accessories median (#641 of 1069)
No single metric tells the full story. See the FRA:HMSB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The H&M Group is a global multi-brand fashion conglomerate founded in 1947. Its flagship brand, H&M, generates the majority of the group's revenue, while ARKET, COS, and the secondhand platform Sellpy represent key sources of future growth. Geographically, 34% of group revenues are generated in Western Europe, followed by North and South America at 23%, and both Southern Europe and Asia, Oceania, and Africa at 13% each. The Nordic region accounts for approximately 9% of total sales.The company operates 4,101 stores (3,660 attributable to H&M brand) across 81 markets worldwide, the majority of which are leased. Online sales contributed slightly above 30% of total group revenue in financial 2025 .
73GF Score
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