Italtile Ltd (ITE) fair value: what the stock is really worth
As of Sep 23, 2026: fair value of Italtile Ltd ZAR 16.59, price ZAR 8.44, upside +96.6%, quality 69 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.
How to read this chart
60‑month range R7.65 – R17.35 · fair‑value band R9.40 – R27.68 · the R8.44 price screens below the R16.59 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 24, 2026.
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Italtile Limited manufactures, retails, and franchises tiles, bathroom ware, and related home-finishing products in South Africa, rest of Africa, and Australia.
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Italtile Limited manufactures, retails, and franchises tiles, bathroom ware, and related home-finishing products in South Africa, rest of Africa, and Australia. The company imports, distributes, and retails brassware and accessories, laminate and vinyl floor boards, bathroom furniture, shower enclosures, sanitaryware, décor, and other home finishing products; tiles, and bathware and related products; taps, shower enclosures, and bathroom furniture and accessories; and paint, ceiling décor, lighting, laminate flooring, window blinds, and tile adhesives. It also manufactures and sells glazed porcelain floor tiles, ceramic wall and floor tiles, vitreous China sanitary ware, acrylic baths, adhesives, shower trays, grout, adhesives, paints, and related products. In addition, the company provides logistics and warehousing services. It sells its products under the Italtile Retail, CTM, and TopT brands through retail stores and online. The company was incorporated in 1955 and is headquartered in Bryanston, South Africa. Italtile Limited operates as a subsidiary of Rallen Proprietary Limited.
Stock analysis
Italtile Ltd (ITE) currently trades at R8.44, while our model-based Fair Value estimate is R16.59, implying the stock looks roughly 49.1% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of R23.70 per share, and 23 of the 26 models we run sit above the R8.44 price.
Bear case: the Asset-Based group reads lowest at R4.55, and 3 of the 26 models stay below the price. Evidence for this calculation is low.
Scenario range: R9.40 (bear) to R27.68 (bull), the price of R8.44 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 69/100 (solid quality), in the Consumer Cyclical sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Italtile Ltd reported revenue of 8.9B ZAR in FY2025 versus 9.1B ZAR in FY2021, a compound −0.7%/yr. Reported net income was 1.5B ZAR in FY2025, compounding −3.4%/yr from FY2021.
Key figures
Market cap 12.3B ZAC · P/E ratio 7.3 · P/S ratio 1.24 · EPS (TTM) R1.15 · Dividend yield 5.5% · Net margin 16.8% · Return on equity 18.2% · Return on assets (EBIT) 25.2%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 48 out of 100 (low confidence).
What moves the price
The share trades about 18% below its 52-week high and 10% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at −19% fair-value upside, at 97%, ITE screens cheaper than that median.
Fair Value models
Bear R9.40Fair Value R16.59Bull R27.68
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 12 months old). Earnings retained since then (0.6900 ZAR per share) are deliberately not added.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 ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.55/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
−2.1%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
−0.4%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+5.8%
Start year 2020 (pandemic). Over 10 years: +11.0% a year
Revenue growth 23 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+12.3%
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What shareholders gained per year (last 5 years), in ZAR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in ZAR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+9.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year+4.2%
Dividend (yield on the price)5.5%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.4% vs 6%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.23% → 23%
Start year 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+19.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (South Africa: IMF forecast 3.3% a year to 2030, 4.9% from 2016 to 2025) that is about +15.5% a year for the price.
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Home Improvement Retail · 34 stocks
Beats the industry median on 9/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score69 · Top 25%
Fair Value upside+97% · Top 25%
Profitability
Return on equity (TTM)18% · Top 25%
Return on assets12% · Top 25%
Net margin (TTM)16% · Top 25%
Operating margin (TTM)21% · Top 25%
Growth and dividend
Revenue growth−2% · Below median
Dividend yield (TTM)5.5% · Top 25%
Valuation Multiplesvs Home Improvement Retail median · lower = cheaper
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). "Italtile Ltd Fair Value". https://www.fairvalue-calculator.com/stock/ITE
Frequently asked questions
Is Italtile Ltd (ITE) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of R16.59 versus a price of R8.44, about +97% upside (undervalued).
What is the fair value of ITE?
Our model-based fair value for Italtile Ltd is R16.59 (as of Sep 24, 2026), built from audited fundamentals. The current price: R8.44.
What is the quality score of ITE?
Italtile Ltd has a Quality Score of 69/100. 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 price target for Italtile Ltd (ITE)?
Our model-based price target is the fair value of R16.59 (as of Sep 24, 2026) from 26 valuation models. Cautious scenario R9.40, optimistic scenario R27.68. It is a calculation from audited fundamentals, not an analyst target.
What is the Italtile Ltd stock forecast for 2026?
Our models put fair value at R16.59, about +97% upside versus a price of R8.44 (undervalued). Cautious scenario R9.40, optimistic scenario R27.68. The calculation is refreshed regularly with new filings.
What is the revenue of Italtile Ltd (ITE)?
Italtile Ltd reported trailing-twelve-month revenue of about 8.8B ZAR (latest available figure, as of Sep 24, 2026).
Does Italtile Ltd pay a dividend?
Italtile Ltd currently shows a dividend yield of about 5.45% relative to its recent price (as of Sep 24, 2026).
What growth is priced into Italtile Ltd (ITE)?
For today's price to be fair in a discounted-cash-flow model, Italtile Ltd would have to grow free cash flow by +19.2 % per year for five years (discount rate 13.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +5.8 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of ITE use?
Our models discount Italtile Ltd at 13.4 %: a base by market capitalisation (small), damped by beta 0.13, country premium for South Africa. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Italtile Ltd that is +19.2 % per year a year over ten years, using the same discount rate (13.4 %) and the same formula as our fair value.
How much growth has Italtile Ltd (ITE) delivered so far?
Over the past 5 years revenue at Italtile Ltd grew +5.8 % a year. The price currently implies +19.2 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Italtile Ltd (ITE) growing?
The median revenue growth in the sector is +2.6 % a year. That is the yardstick for the growth priced into Italtile Ltd (+19.2 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Italtile Ltd (ITE)?
The free-cash-flow yield on the price is 3.90 %: that much free cash flow Italtile Ltd produces per unit of market value. When it exceeds the discount rate of our models (13.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Italtile Ltd (ITE)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Italtile Ltd it is R16.59 per share (as of Sep 24, 2026), against a price of R8.44. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Italtile Ltd stock overvalued or undervalued in 2026?
As of Sep 24, 2026, ITE trades below its calculated fair value: price R8.44, fair value R16.59, a gap of about +97% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of ITE?
No. The price is what the market pays today (R8.44); the fair value is what the company's own numbers justify (R16.59). For Italtile Ltd the two are R8.15 per share apart. That gap is exactly why we show both numbers side by side.
How much is Italtile Ltd worth?
The market values Italtile Ltd at about 12.3B ZAC (market capitalisation, as of Sep 24, 2026). Per share that is R8.44; our models calculate a fair value of R16.59 per share.
What do the bullish and bearish scenarios say about ITE?
Our models span a range for Italtile Ltd: cautious scenario R9.40, base R16.59, optimistic R27.68 per share (as of Sep 24, 2026, price R8.44). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of ITE?
Italtile Ltd trades at a price-to-earnings ratio of 7.3 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of R16.59 is built from several models across several years. Other multiples: PEG 45.2, P/B 1.5, P/S 1.4, EV/EBITDA 4.4.
What is the PEG ratio of ITE?
The PEG ratio of Italtile Ltd is 45.21 (P/E divided by earnings growth, as of Sep 24, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Italtile Ltd (ITE)?
Balance-sheet figures for Italtile Ltd (as of Sep 24, 2026): return on equity 18.2%. They feed the Quality Score of 69/100, which measures business quality independently of the share price.
How far is ITE from its 52-week high?
Italtile Ltd trades at R8.44, about 18% below its 52-week high of R10.35 and 10% above the low of R7.65 (as of Sep 23, 2026). Distance from the high says nothing about value: that is what the fair value of R16.59 is for.
Which stocks are comparable to Italtile Ltd?
From the same area (Consumer Cyclical) we also value The Home Depot, Inc, Lowe's Companies, Inc, Wesfarmers Limited, Floor & Decor Holdings, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Italtile Ltd stock attractive at the current price?
The data as of Sep 24, 2026: price R8.44, calculated fair value R16.59 (+97%), Quality Score 69/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of ITE calculated?
We run Italtile Ltd through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of R16.59, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.0 % above its aggregate fair value. Italtile Ltd currently trades 97 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Italtile Ltd (ITE)?
The closing price on Sep 23, 2026 was R8.44. Our model-based fair value is R16.59, about +97% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Italtile Ltd right now?
The price is below even our cautious bear case (R9.40). The market is more pessimistic than our downside scenario. The model range is unusually wide (R9.40 to R27.68). The outcome hinges heavily on assumptions, so read the point estimate with caution. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid quality (69/100) at a price below fair value, the discount is the argument here, not the business quality.
Where does the earnings growth of Italtile Ltd (ITE) come from?
Earnings per share at Italtile Ltd grew +6.9 % a year from 2014 to 2025. Broken into its drivers: revenue per share +9.9 %, EBIT margin −2.8 %, tax rate −0.1 %, residual (interest, one-offs) +0.2 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Italtile Ltd
How large is the market capitalisation of Italtile Ltd (ITE)?
The market capitalisation of Italtile Ltd is 12.3B ZAC. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Italtile Ltd (ITE)?
The price-to-sales ratio of Italtile Ltd is 1.24 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Italtile Ltd (ITE)?
Earnings per share at Italtile Ltd are R1.15 (price ÷ EPS = P/E 7.3). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Italtile Ltd (ITE)?
The dividend yield of Italtile Ltd is 5.5% (payout 40.0%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Italtile Ltd (ITE)?
The net margin of Italtile Ltd is 16.8% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Italtile Ltd (ITE)?
The return on equity (ROE) of Italtile Ltd is 18.2% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Italtile Ltd (ITE)?
On an EBIT basis the return on assets of Italtile Ltd is 25.2% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Italtile Ltd (ITE)?
The operating margin of Italtile Ltd is 21.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Italtile Ltd (ITE)?
Revenue at Italtile Ltd is growing −1.7% versus a year earlier (3y avg −0.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Italtile Ltd (ITE)?
Earnings per share at Italtile Ltd are growing −14.6% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Italtile Ltd (ITE) hold?
Italtile Ltd holds more cash than debt, 1.2B ZAC net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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