Is the B&M share price (LON:BME) expensive at 352.7p?

B&M European Value Retail (LON:BME) is a £3.55bn market can discount retailer with stores in the UK and Germany. For the fiscal year ended 30 March 2019, B&M revenues increased 15% to £3.49bn and net income increased 10% to £205.2m.

Right now the B&M share price is on the expensive side from a factor perspective, based on its Value Rank of 32. Let's see why this is.

A closer look at B&M's Value Rank

We can see by using B&M’s StockReport that the group has a:

• Rolling price to book value of 3.36,
• Trailing twelve month price to earnings ratio of 16.8
• Trailing twelve month price to free cashflow of 33.5
• Rolling dividend yield of 2.34%
• Trailing twelve-month price to sales ratio of 1.02

This combination of financial traits suggests that B&M stock is toward the more expensive end of the market. Being expensive is not the end of the world, of course - but it does help to have favourable exposures to other factors to justify the share price premium.

What does this mean for potential investors?

Some of the best quality stocks in the market have defensible models that can deliver high levels of shareholder returns over the long term. But there are no guarantees and it's important to do your own research. Indeed, we've identified some areas of concern with B&M European Value Retail SA that you can find out about here.