JBH rallied almost 20% in FY25 and has more than doubled in the last 18 months – fortunately, we enjoyed some of the move but, like many, underestimated how much the elastic band would stretch. The stock is now trading more than 50% above its average valuation of the previous 5 years, and while AI may see plenty of upgrades across the tech space, that’s a lot of good news built into sales for the retailer over the coming years. While we all know mobile phones, computers, and TVs are about to take another leap forward as AI continues to evolve, we must ask what premium or valuation it justifies. An excellent company for when the market next has a pullback, but not one to chase into strength in our view.
- We believe JBH is a quality retailer, but even with rate cuts expected in the coming year, it feels rich above $110.
- Moving forward, we expect JBH to trade more in line with the ASX, with its valuation looking full on 25.8x for FY25.
MM is cautiously bullish JBH, in line with the market
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JB Hi-Fi (JBH) Valuation over the last 5 years
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JB Hi-Fi (JBH) Valuation over the last 5 years
