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J D Wetherspoon plc (JDW) Fair Value & Analysis

Consumer Cyclical · GB · Market cap 764M GBX

JD J D Wetherspoon plc JDW · LSE
Price£7.26
Fair Value£9.46
Upside+30.4%
Quality55/100
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Healthy Growth
Thin margins · 2.5% net margin
High debt · generates free cash flow
1.64% dividend yield
Ranks above peers (9/14)
Narrow moat 40/100
Evidence: High Range £4.11 – £17.74 Share as image

Fair value as of: Jul 16, 2026

From 26 valuation models · updated 25 days ago

Fair value updated Jul 16, 2026, revised from £9.47 to £9.46 (−0.1%) since Jun 24, 2026. Share price +14.1% over the past month.

A solid business, screening 30% undervalued on our models.

What matters now

  • The model range is unusually wide (£4.11 to £17.74). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid quality (55/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

£11.84 £3.33 Fair Value £9.46 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range £3.33 – £11.84 · fair‑value band £4.11 – £17.74 · the £7.26 price screens below the £9.46 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

J D Wetherspoon plc (JDW) currently trades at £7.26, while our model-based Fair Value estimate is £9.46, implying the stock looks roughly 30.4% undervalued today. The Quality Score stands at 55/100 (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, J D Wetherspoon plc generated revenue of £2.2B at a net margin of 2.5%. Revenue grew 5.7% year over year. It earns a return on equity of 15.2%. Net debt stands at £1.2B. Fundamentals as of Jul 16, 2026

Our scenario range runs from £4.11 (bear case) to £17.74 (bull case); at £7.26, the current price sits within 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 -47% fair-value upside, at 30%, JDW 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 BearBaseBull Evidence
Highest evidence
Growth DCF £2.97 £7.74 £14.22 80
Residual Income £3.67 £4.85 £14.21 76
Rev-Margin DCF £4.44 £11.81 £20.77 74
All 26 models by family
DCF Models
FCF DCF £3.01 £8.19 £15.58 38
Owner Earnings £2.12 £6.81 £13.50 31
5Y Revenue Exit £4.44 £11.92 £21.76 39
5Y EBITDA Exit £9.32 £21.48 £36.25 41
5Y P/E Exit £3.06 £9.22 £15.91 38
10Y Revenue Exit £3.40 £9.80 £18.96 36
10Y EBITDA Exit £6.64 £16.02 £29.51 37
10Y P/E Exit £2.92 £8.04 £14.70 35
Earnings-Based
Graham-Dodd £4.39 £16.85 £22.84 54
Lynch FV £4.11 £5.88 £7.64 50
PEG = 1.0 £4.11 £5.88 £7.64 46
EPV £2.71 £3.96 £5.01 59
Dividend Discount
Gordon GGM £1.43 £2.58 £3.56 70
DDM Multi-Stage £1.43 £2.36 £2.76 61
Multiples
P/E Multiple £10.64 £14.19 £17.74 63
P/S Multiple £8.22 £10.97 £13.71 58
P/B Multiple £8.22 £10.97 £13.71 55
EV/EBIT £11.75 £17.82 £23.89 53
EV/EBITDA £15.57 £22.91 £30.25 54
EV/Revenue £5.82 £11.08 £16.34 43
Asset-Based
NCAV (Graham) £1.72 £2.30 £3.43 50
Growth DCF
Growth DCF £2.97 £7.74 £14.22 80
Rev-Margin DCF £4.44 £11.81 £20.77 74
Economic Profit
Residual Income £3.67 £4.85 £14.21 76
ROIC Compounder £2.71 £4.34 £6.77 72
Growth Earnings
Growth-Adj P/E £7.66 £10.94 £14.22 68

Widest divergence: Multiples (£11.08) versus Asset-Based (£2.30). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 2.2B GBX
Revenue growth (YoY) +5.7%
Net margin 2.5%
Return on equity 15.2%
Free cash flow 100M GBX FY2025
P/E ratio 12.7
More key figures
Operating margin 4.9%
EPS (TTM) £0.5700
Dividend yield 1.6%
EPS growth (YoY) -34.5%
Net debt 1.2B GBX FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 55/100

Of which business quality 51 · Market factors (momentum, volatility) 65

Profitability 45
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 50
Earnings quality: real cash, not paper profit
Fin. Strength 12
Balance sheet, leverage, solvency risk
Investment 89
Disciplined investing over empire-building
Low Volatility 57
Calm price path (market factor)
Momentum 64
Price trend over the last 3–12 months (market factor)
52W Momentum 75
Distance to the 52-week high (market factor)
Net Issuance 100
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

J D Wetherspoon plc owns and operates pubs and hotels in the United Kingdom and the Republic of Ireland. It also offers foods and drinks. The company was founded in 1979 and is based in Watford, the United Kingdom.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

J D Wetherspoon plc reported revenue of £2.1B in FY2025 versus £773M in FY2021, a compound +28.8%/yr. Reported net income was £68.0M in FY2025.

Growth Quality 83/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
£2.1B
Latest YoY
+4.5%
Avg. growth/yr (3Y)
+6.9%
Avg. growth/yr (5Y)
+11.0%
Avg. growth/yr (35Y)
+17.7%
Revenue +28.8%/yr
FY21 £773M
FY22 £1.7B
FY23 £1.9B
FY24 £2.0B
FY25 £2.1B
Net income
FY21 −£177M
FY22 £19.3M
FY23 £59.6M
FY24 £48.8M
FY25 £68.0M

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Cite: Fair Value Calculator (2026). "J D Wetherspoon plc Fair Value". https://www.fairvalue-calculator.com/stock/JDW

Peer Group

Restaurants · 226 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 55 · Above median
Fair Value upside +30% · Top 25%
Return on equity (TTM) 15% · Top 25%
Return on assets 4% · Above median
Net margin (TTM) 3% · Above median
Operating margin (TTM) 5% · Above median
Revenue growth 6% · Above median
Dividend yield (TTM) 1.6% · Below median
Debt / equity 1.99× · Higher than 75% of peers

Valuation Multiples vs Restaurants median · lower = cheaper

P/E (TTM) 12.7× · Cheaper than 75% of peers
P/B 2.85× · Pricier than median
P/S (TTM) 0.47× · Cheaper than median
P/FCF 10.3× · Pricier than 75% of peers
EV/EBITDA 8.3× · Pricier 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 74 · sector 28
FUTURE 29 · sector 21
PAST 61 · sector 17
HEALTH 1 · sector 97
DIVIDEND 33 · sector 58

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 Restaurants stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
McDonald's Corporation MCDS C$24.01 C$10.84 -55%
Starbucks Corporation SBUX $105.49 $35.83 -66%
Chipotle Mexican Grill, Inc CMG $34.63 $18.43 -47%
Yum! Brands, Inc YUM $163.54 $59.66 -64%
Restaurant Brands International Inc QSR C$104.19 C$36.37 -65%
Darden Restaurants, Inc DRI $195.74 $173.68 -11%
Yum China Holdings YUMC $43.90 $55.10 +26%
Texas Roadhouse, Inc TXRH $197.03 $104.89 -47%
Dutch Bros Inc BROS $68.36 $12.80 -81%
Domino's Pizza, Inc DPZ $322.18 $231.96 -28%

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Frequently asked questions

Is J D Wetherspoon plc (JDW) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of £9.46 versus a price of £7.26, about +30% (undervalued).
What is the fair value of JDW?
Our model-based fair value for J D Wetherspoon plc is £9.46 (as of Jul 16, 2026), built from audited fundamentals. The current price is £7.26.
What is the quality score of JDW?
J D Wetherspoon plc has a Quality Score of 55/100. 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 J D Wetherspoon plc (JDW)?
J D Wetherspoon plc reported trailing-twelve-month revenue of about £2.2B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of JDW?
The net profit margin of J D Wetherspoon plc is about 2.5%, meaning it keeps roughly 2.5% of revenue as net income. Based on the latest reported figures.
Does J D Wetherspoon plc pay a dividend?
J D Wetherspoon plc currently shows a dividend yield of about 1.89% relative to its recent price (as of Jul 16, 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.

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