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The City of London Investment Trust plc (CTY) Fair Value & Analysis

Financial Services · GB · Market cap 2.9B GBX

TC The City of London Investment Trust plc CTY · LSE
Price£5.66
Fair Value£6.40
Upside+13.1%
Quality69/100
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Evidence: High Range £4.80 – £8.00

Fair value as of: Jun 26, 2026

From 20 valuation models · updated 7 days ago

Share price +3.6% over the past month.

Price vs Fair Value (12 months)

£5.67 £4.57 Fair Value £6.40 Jul 2025 Jul 2026

12‑month range £4.57 – £5.67 · fair‑value band £4.80 – £8.00 · the £5.66 price screens below the £6.40 fair value. As of Jun 26, 2026.

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Analysis

The City of London Investment Trust plc (CTY) currently trades at £5.66, while our model-based Fair Value estimate is £6.40 — implying the stock looks roughly 13.1% undervalued today. We read business quality at 69/100 (solid quality), in the Financial Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high) — always confirm before acting.

Over the trailing twelve months, The City of London Investment Trust plc generated revenue of £582M at a net margin of 97.4%. It earns a return on equity of 24.0%. Net debt stands at £131M. The stock trades on a trailing P/E of 4.9. Fundamentals as of Jun 26, 2026

Key figures & financial health

Revenue (TTM) 582M GBX
Revenue growth (YoY) +358%
Net margin 97.4%
Return on equity 24.0%
Free cash flow 42.1M GBX FY2015
P/E ratio 4.9
More key figures
Operating margin 98.5%
EPS (TTM) £1.14
Dividend yield 3.8%
EPS growth (YoY) +395%
Net debt 131M GBX FY2025

Figures from reported company fundamentals (EODHD) · as of Jun 26, 2026. TTM = trailing twelve months.

About the company

The City of London Investment Trust plc is a closed-ended equity mutual fund launched and managed by Henderson Investment Funds Limited. It is co-managed by Henderson Global Investors Limited. The fund invests in the public equity markets of the United Kingdom. It seeks to invest in stocks of companies operating across diversified sectors. The fund primarily invests in dividend paying growth stocks of companies. It employs fundamental analysis with a focus on factors such as strong balance sheets, good cash flows, and significant upside potential to create its portfolio. The fund benchmarks the performance of its portfolio against the AIC UK Growth & Income sector's size weighted average. It was formerly known as TR City of London Trust PLC. The City of London Investment Trust plc was formed in 1860 and is domiciled in the United Kingdom.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

The City of London Investment Trust plc reported revenue of £350M in FY2025 versus £268M in FY2021, a compound +6.9%/yr. Reported net income was £342M in FY2025, compounding +6.5%/yr from FY2021.

Revenue +6.9%/yr
FY21 £268M
FY22 £110M
FY23 £63.7M
FY24 £151M
FY25 £350M
Net income +6.5%/yr
FY21 £266M
FY22 £99.2M
FY23 £61.4M
FY24 £297M
FY25 £342M

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Frequently asked questions

Is The City of London Investment Trust plc (CTY) undervalued?
As of Jun 26, 2026, our model estimates a fair value of £6.40 versus a price of £5.66 — about +13% (undervalued). Model-based estimate, not financial advice.
What is the fair value of CTY?
Our model-based fair value for The City of London Investment Trust plc is £6.40 (as of Jun 26, 2026), built from audited fundamentals. The current price is £5.66.
What is the quality score of CTY?
The City of London Investment Trust plc has a Quality Score of 69/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of The City of London Investment Trust plc (CTY)?
The City of London Investment Trust plc reported trailing-twelve-month revenue of about £582M (latest available figure, as of Jun 26, 2026).
What is the net profit margin of CTY?
The net profit margin of The City of London Investment Trust plc is about 97.4%, meaning it keeps roughly 97.4% of revenue as net income. Based on the latest reported figures.
Does The City of London Investment Trust plc pay a dividend?
The City of London Investment Trust plc currently shows a dividend yield of about 3.84% relative to its recent price (as of Jun 26, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.

Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.