DAVY VIEW

We have updated our Glanbia model following its full year results – the net outcome is a 13.5% cut to our FY25 EPS forecast and 11.7% to FY26. The acute equity drawdown, well in excess of the earnings revision, has the stock trading on a decadal low P/E multiple of 8x for 2026; this compares with its 20-year average of 13.2x (FY2). The multiple is more akin to deep-cyclical valuation than a Branded/Ingredients play but clearly reflects concerns on near-term earnings delivery and volatility. Even stressing for downside scenarios, the equity is intrinsically undervalued. On FY26 estimates, it trades on a P/E of 8x, a free cash flow yield of 9.6% and EV/EBITDA of 5.9x.