Mitchells & Butlers MAB.L
United KingdomConsumer Cyclical · RestaurantsLondon Stock Exchange · GBP
3.48 GBP (+21.0%)
9 analysts
Trading 2120.30 €Open account ↗
Trade Republic1.00 €Open account ↗
XTB1.00 €affiliateOpen account ↗XTB1.00 €★ featured · affiliateOpen account ↗Trading 2120.30 €Open account ↗Trade Republic1.00 €Open account ↗XTB1.00 €★ featured · affiliateOpen account ↗200.00 € order · cheapest cheapest available in your country iCompare all 22 brokers →What does it do?
Mitchells & Butlers is one of the largest operators of pubs and restaurants in the UK, with a business model based on managing a large portfolio of predominantly freehold properties.
Listed on London Stock Exchange · Symbol MAB.L · LON: MAB · Currency GBP
Key points
from its scores- ✓Attractive valuation8.1
- ✕Little or no dividend1.5
- ✕Little competitive advantage3.3
- ✕Fragile balance sheet4.2
AI analysis
bottom line, main risk, context and newsThe valuation is cheap, but balance sheet weakness and lack of growth warrant caution until an improvement in cash generation is seen.
Mitchells & Butlers trades at a P/E of 9.27, an attractive level, but its financial health is fragile (liquidity ratio of 0.48) and its return on capital is low (ROE 6.58%), reflecting a business with a limited moat and sensitivity to costs.
The main risk is its high leverage (Net Debt/EBITDA of 2.68) and low liquidity ratio (0.48), which could limit its financial flexibility if the interest rate environment remains restrictive or if consumer spending weakens.
Context and risks
Mitchells & Butlers operates in the UK, a country with moderate governance risk. Its high leverage (Net Debt/EBITDA of 2.68) and low liquidity ratio (0.48) make it vulnerable to a rising interest rate environment, although its debt is mostly fixed-rate, mitigating the short-term impact.
Is Mitchells & Butlers stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 45% below the Consumer Cyclical median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 9.3 | 17.8 | −48% |
| EV / EBITDA | 6.6 | 11.2 | −41% |
| Price / book | 0.6 | 2.9 | −80% |
| Price / sales | 0.6 | 1.3 | −50% |
Sector: median of the 228 Consumer Cyclical companies analysed. In bold, the multiples used for the comparison.
Valuation score: 8.1 out of 10 (median for Consumer Cyclical: 6.6).
Average analyst target: 3.48 GBP, +21.0% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 4.2 (sector 5.7), Growth 5.3 (sector 5.9).
Classic formulas with standard assumptions (7.8% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Cyclical medianValuation
- P/E
- 9.3
- Forward P/E
- 8.6
- EV / EBITDA
- 6.6
- Price / book
- 0.6
- Price / sales
- 0.6
- PEG
- 1.30
- Market cap
- 1.7B GBP
- Enterprise value
- 2.9B GBP
Profitability
- ROE
- 6.6%
- ROA
- 3.9%
- ROIC (approx.)
- 7.8%
- Gross margin
- 17.1%
- Operating margin
- 12.3%
- Net margin
- 6.7%
- Free cash flow
- 103.9M GBP
- FCF yield
- 6.1%
- Cash conversion
- 24%
Solvency
- Total debt
- 1.4B GBP
- Net debt
- 1.2B GBP
- Cash
- 240.0M GBP
- EBITDA
- 439.0M GBP
- Net debt / EBITDA
- 2.68
- Debt / equity
- 48.31
- Current ratio
- 0.48
- Quick ratio
- 0.44
Growth
- Revenue growth
- +2.5%
- Earnings growth
- +6.6%
- EPS (TTM)
- 0.31 GBP
- EPS (forward)
- 0.33 GBP
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 1.23
- Analyst consensus
- Strong buy (9)
- Target price
- 3.48 GBP
Recent news
All MAB.L news →Compare it with its sector
All 228 in Consumer Cyclical →Frequently asked questions about Mitchells & Butlers
Is Mitchells & Butlers stock cheap or expensive?
On P/E and EV / EBITDA, it trades 45% below the Consumer Cyclical median on average. Valuation score: 8.1 out of 10 (median for Consumer Cyclical: 6.6). Average analyst target: 3.48 GBP, +21.0% versus the price. This is not investment advice.
What score does Mitchells & Butlers get on MeridIAn Screener?
It scores 5.1 out of 10, rank 1,655 of 2,130 (better than 21% of the companies analysed). Its strongest category is Valuation (8.1) and its weakest, Dividend (1.5). Analysis of 08/10/2026.
What is Mitchells & Butlers's P/E ratio?
Its P/E is 9.3: the share price equals 9.3 times earnings per share over the last 12 months. The Consumer Cyclical median is 17.8. Based on the earnings analysts expect, the forward P/E is 8.6.
How much is Mitchells & Butlers worth on the stock market?
Its market capitalisation is 1.7B GBP and its enterprise value, debt included, is 2.9B GBP.
How much debt does Mitchells & Butlers have?
Its net debt (debt minus cash) is 1.2B GBP. That is 2.68 times its EBITDA; the Consumer Cyclical median is 1.91.
Does Mitchells & Butlers pay a dividend?
It pays no dividend, or almost none.
How has Mitchells & Butlers stock performed over the last year?
It has risen 17.6% over the last year, excluding dividends. Over the last 52 weeks it has traded between 0.00 and 3.02 GBP. Past performance does not guarantee future results.
What do analysts think of Mitchells & Butlers?
9 analysts cover it; their average recommendation is “Strong buy” and their average target is 3.48 GBP (+21.0% versus the price). It is an estimate, not market data.