EN DE

DFS Furniture plc (DFS) Fair Value & Analysis

Consumer Cyclical · GB · Market cap 325M GBX

DF DFS Furniture plc DFS · LSE
Price£1.42
Fair Value£2.30
Upside+62.0%
Quality65/100
Watch DFS Furniture plc for free, get notified when fair value or trend changes. Watch for free
Healthy Growth
Thin margins · 3.3% net margin
Low debt · generates free cash flow
0.71% dividend yield
Ranks above peers (11/14)
Narrow moat 39/100
Evidence: High Range £1.72 – £2.87 Share as image

Fair value as of: Jul 15, 2026

From 25 valuation models · updated 26 days ago

Share price +12.5% over the past month.

A solid business, screening 62% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (£1.72). The market is more pessimistic than our downside scenario.
  • Solid quality (65/100) at a price below fair value, the discount is the argument here, not the business quality.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

£2.25 £0.8544 Fair Value £2.30 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 15, 2026.

How to read this chart

60‑month range £0.8544 – £2.25 · fair‑value band £1.72 – £2.87 · the £1.42 price screens below the £2.30 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 15, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

DFS Furniture plc (DFS) currently trades at £1.42, while our model-based Fair Value estimate is £2.30, implying the stock looks roughly 62.0% undervalued today. The Quality Score stands at 65/100 (solid quality), in the Consumer Cyclical 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, DFS Furniture plc generated revenue of £1.1B at a net margin of 3.3%. Revenue grew 8.6% year over year. It earns a return on equity of 13.4%. Net debt stands at £458M. Fundamentals as of Jul 15, 2026

Our scenario range runs from £1.72 (bear case) to £2.87 (bull case); at £1.42, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. For context, the median of 10 Consumer Cyclical peers we cover trades at -24% fair-value upside, at 62%, DFS screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF £5.86 £7.85 £10.21 80
Residual Income £0.8900 £0.9600 £1.09 76
Rev-Margin DCF £3.69 £5.23 £6.92 74
All 25 models by family
DCF Models
FCF DCF £5.76 £7.96 £10.69 38
Owner Earnings £2.97 £4.16 £5.65 31
5Y Revenue Exit £3.69 £5.11 £6.80 39
5Y EBITDA Exit £5.24 £7.89 £10.82 41
5Y P/E Exit £3.04 £3.95 £4.83 38
10Y Revenue Exit £4.45 £5.82 £7.42 36
10Y EBITDA Exit £5.40 £7.53 £10.10 37
10Y P/E Exit £4.14 £5.10 £6.10 35
Earnings-Based
Graham-Dodd £0.7100 £1.72 £2.22 54
PEG = 1.0 £0.3000 £0.4300 £0.5600 46
EPV £1.76 £2.06 £2.30 59
Dividend Discount
Gordon GGM £0.3200 £0.5100 £0.7000 70
DDM Multi-Stage £0.3200 £0.4400 £0.5700 61
Multiples
P/E Multiple £1.72 £2.30 £2.87 63
P/S Multiple £1.33 £1.78 £2.22 58
P/B Multiple £1.33 £1.78 £2.22 55
EV/EBIT £3.75 £5.13 £6.52 53
EV/EBITDA £5.64 £7.65 £9.67 54
EV/Revenue £2.40 £3.60 £4.80 43
Asset-Based
NCAV (Graham) £0.5400 £0.7300 £1.09 50
Growth DCF
Growth DCF £5.86 £7.85 £10.21 80
Rev-Margin DCF £3.69 £5.23 £6.92 74
Economic Profit
Residual Income £0.8900 £0.9600 £1.09 76
ROIC Compounder £1.83 £2.24 £2.67 72
Growth Earnings
Growth-Adj P/E £1.31 £1.87 £2.43 68

Widest divergence: Growth DCF (£5.23) versus Dividend Discount (£0.4400). Highest evidence: Growth DCF (80).

Notify me when DFS reaches fair value

Free. You confirm by email (double opt-in) and can unsubscribe anytime in one click.

Key figures & financial health

Revenue (TTM) 1.1B GBX
Revenue growth (YoY) +8.6%
Net margin 3.3%
Return on equity 13.4%
Free cash flow 160M GBX FY2025
P/E ratio 9.4
More key figures
Operating margin 8.6%
EPS (TTM) £0.1500
Dividend yield 0.7%
EPS growth (YoY) +88.2%
Net debt 458M GBX FY2025

Figures from reported company fundamentals · as of Jul 15, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 65/100

Of which business quality 64 · Market factors (momentum, volatility) 39

Profitability 54
Margins and returns on capital today
Quality Growth 67
Are margins and returns improving?
Cashflow 81
Earnings quality: real cash, not paper profit
Fin. Strength 24
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 42
Calm price path (market factor)
Momentum 35
Price trend over the last 3–12 months (market factor)
52W Momentum 43
Distance to the 52-week high (market factor)
Net Issuance 81
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

DFS Furniture plc designs, manufactures, delivers, installs, and retails upholstered furniture in the United Kingdom and the Republic of Ireland. The company retails sofas under the DFS and Sofology brand names. It engages in contract logistics; and the provision of after-sales services. The company sells its products through stores and its website.

Full company description

DFS Furniture plc designs, manufactures, delivers, installs, and retails upholstered furniture in the United Kingdom and the Republic of Ireland. The company retails sofas under the DFS and Sofology brand names. It engages in contract logistics; and the provision of after-sales services. The company sells its products through stores and its website. The company was founded in 1969 and is based in Doncaster, the United Kingdom.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

DFS Furniture plc reported revenue of £1.0B in FY2025 versus £1.1B in FY2021, a compound −0.7%/yr. Reported net income was £24.2M in FY2025, compounding −27.7%/yr from FY2021.

Growth Quality 79/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
£1.0B
Latest YoY
+4.4%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−3.6%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.3%
Avg. growth/yr (13Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+4.7%
Revenue −0.7%/yr
FY21 £1.1B
FY22 £1.1B
FY23 £1.1B
FY24 £987M
FY25 £1.0B
Net income −27.7%/yr
FY21 £88.7M
FY22 £31.4M
FY23 £26.2M
FY24 −£4.4M
FY25 £24.2M
Character of growth · EPS growth decomposed (2015-2025) −7.2 % p.a.
Revenue per share −0.1 pp

of which total revenue +4.5 pp · buybacks/dilution −4.6 pp

EBIT margin −5.3 pp
Tax rate −1.2 pp
Residual (interest, one-offs) −0.6 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

Watch DFS: get an alert when its fair value changes →

Share or link this analysis
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Cite: Fair Value Calculator (2026). "DFS Furniture plc Fair Value". https://www.fairvalue-calculator.com/stock/DFS

Peer Group

Specialty Retail · 221 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 65 · Top 25%
Fair Value upside +62% · Top 25%
Return on equity (TTM) 13% · Above median
Return on assets 5% · Above median
Net margin (TTM) 3% · Above median
Operating margin (TTM) 9% · Above median
Revenue growth 9% · Above median
Dividend yield (TTM) 0.7% · Bottom 25%
Debt / equity 0.42× · Higher than median

Valuation Multiples vs Specialty Retail median · lower = cheaper

P/E (TTM) 9.4× · Cheaper than 75% of peers
P/B 1.74× · Pricier than median
P/S (TTM) 0.41× · Cheaper than median
P/FCF 2.7× · Cheaper than median
EV/EBITDA 5.5× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 29
FUTURE 43 · sector 23
PAST 54 · sector 27
HEALTH 79 · sector 94
DIVIDEND 14 · sector 51

Insider activity: 35/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Specialty Retail stocks, each showing price versus our Fair Value estimate (as of Jul 15, 2026).

Stock Price Fair Value vs Fair Value
Casey's General Stores, Inc CASY $827.04 $405.44 -51%
Williams-Sonoma, Inc WSM $222.84 $164.16 -26%
Ulta Beauty, Inc ULTA $479.57 $488.39 +2%
DICK'S Sporting Goods, Inc DKS $208.89 $181.10 -13%
Best Buy Co BBY $83.98 $109.12 +30%
China Tourism Group 601888 ¥52.90 ¥40.40 -24%
Tractor Supply Company TSCO $31.01 $35.52 +15%
Murphy USA Inc MUSA $618.57 $423.35 -32%
Five Below, Inc FIVE $197.71 $117.29 -41%
Taiwan Mobile Co 3045 110.50 TWD 80.98 TWD -27%

Compare DFS Furniture plc with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Consumer Cyclical stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Frequently asked questions

Is DFS Furniture plc (DFS) overvalued or undervalued?
As of Jul 15, 2026, our model estimates a fair value of £2.30 versus a price of £1.42, about +62% (undervalued).
What is the fair value of DFS?
Our model-based fair value for DFS Furniture plc is £2.30 (as of Jul 15, 2026), built from audited fundamentals. The current price is £1.42.
What is the quality score of DFS?
DFS Furniture plc has a Quality Score of 65/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of DFS Furniture plc (DFS)?
DFS Furniture plc reported trailing-twelve-month revenue of about £1.1B (latest available figure, as of Jul 15, 2026).
What is the net profit margin of DFS?
The net profit margin of DFS Furniture plc is about 3.3%, meaning it keeps roughly 3.3% of revenue as net income. Based on the latest reported figures.
Does DFS Furniture plc pay a dividend?
DFS Furniture plc currently shows a dividend yield of about 0.80% relative to its recent price (as of Jul 15, 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.

14 days Pro free · no card

Track DFS Furniture plc and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.