Valuation - Imperial Brands Group PLC
A Valuation of Imperial Brands Group PLC. (LON:IMB) on 26 October 2020
A Valuation of Imperial Brands Group PLC. (LON:IMB) on 26 October 2020
Imperial Brands Group PLC is a UK incorporated and listed company with 2 main businesses: a tobacco business and a distribution business. The company's primary markets are North America, Europe, Australasia and Northern Africa. The company is a global business but reports in GBP, so I have valued it in Sterling.
Market Price: £13.06
Est. Value: £13.90
Rating: ‘Hold’
Story
In February 2016, Imperial Tobacco Group PLC changed its name to 'Imperial Brands Group PLC' in order to distance itself from growing negative associations with tobacco. Despite this, the company has done virtually nothing in Next-Generation Products (NGP). Imperial is a tobacco and distribution business moving into long-term controlled decline. This is not a bad thing as long as the management recognise this and allocate capital appropriately.
The new (unfortunately surnamed) CEO, Stefan Bomhard, joined the company in July from Inchcape - a global ca…