Marks and Spencer Group PLC (MKS) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Marks and Spencer Group PLC stock £4.21, price £4.44, that is 5.2% below the price, quality 59 out of 100. Rating: fairly valued. Calculated from audited financials with 25 of our 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. As of Nov 3, 2026.
How to read this chart
60‑month range £0.9029 – £4.44 · fair‑value band £3.16 – £5.26 · the £4.44 price screens above the £4.21 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 3, 2026.
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Marks and Spencer Group plc operates various retail stores. It operates through Fashion, Home & Beauty; Food; International; and Ocado segments. The company offers womenswear, menswear, lingerie, kids wear, beauty, and home products through UK and ROI, retail stores, and online.
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It also provides meat, fish, protein deli and dairy; produce and floral; meals, frozen, and food on the move; core basket; beers, wines, and spirits; and impulse and events, and hospitality services. In addition, it operates international franchises; and provides banking services.
The company also exports its products. The company was founded in 1884 and is based in London, the United Kingdom.
Stock analysis
Marks and Spencer Group PLC (MKS) currently trades at £4.44, while our model-based Fair Value estimate is £4.21, so the stock looks roughly fairly valued today (gap 5.5%).
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Valuation
Bull case: the Growth DCF group reads highest at a median of £3.60 per share, and 4 of the 25 models we run sit above the £4.44 price.
Bear case: the Dividend Discount group reads lowest at £0.4500, and 21 of the 25 models stay below the price. Data coverage for this calculation is medium.
Scenario range: £3.16 (bear) to £5.26 (bull), the price of £4.44 sits inside 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 59/100 (solid quality), in the Consumer Cyclical sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Marks and Spencer Group PLC reported revenue of £17.3B in FY2026 versus £10.9B in FY2022, a compound +12.2%/yr. Reported net income was £259M in FY2026, compounding −4.1%/yr from FY2022.
Key figures
Market cap £9.4B Large · P/E ratio 37.0 · P/S ratio 0.54 · EPS (TTM) £0.1200 · Dividend yield 1.0% · Net margin 1.5% · Return on equity 7.8% · Return on assets (EBIT) 6.4%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 31 out of 100 (low confidence).
What moves the price
The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat.
The share trades at its 52-week high and 45% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at 6% fair-value upside, at −5%, MKS screens richer than that median.
Fair Value models
Bear£3.16Fair Value £4.21Bull£5.26
Price £4.44 · Downside -5.2%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then (£0.0458 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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = 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.
Best data coverage
FCF DCF£2.99£4.07£5.4881
Growth DCF£3.07£4.06£5.3380
Owner Earnings£1.71£2.30£3.0777
All 25 models by family
DCF Models
FCF DCF£2.99£4.07£5.4881
Owner Earnings£1.71£2.30£3.0777
5Y Revenue Exit£2.52£3.56£4.8273
5Y EBITDA Exit£3.93£6.05£8.3975
5Y P/E Exit£2.36£3.29£4.1972
10Y Revenue Exit£2.62£3.56£4.6768
10Y EBITDA Exit£3.53£5.17£7.1669
10Y P/E Exit£2.59£3.38£4.2465
Earnings-Based
Graham-Dodd£0.8500£1.87£2.3866
PEG = 1.0£0.2900£0.4200£0.550057
EPV£1.76£2.00£2.2174
Dividend Discount
Gordon GGM£0.3200£0.4900£0.660068
DDM Multi-Stage£0.3200£0.4500£0.590067
Multiples
P/E Multiple£2.07£2.76£3.4563
P/S Multiple£1.60£2.13£2.6658
P/B Multiple£3.34£4.45£5.5655
EV/EBIT£2.09£3.18£4.2765
EV/EBITDA£3.84£5.50£7.1767
EV/Revenue£1.03£1.97£2.9251
Asset-Based
NCAV (Graham)£0.5600£0.7500£1.1154
Growth DCF
Growth DCF£3.07£4.06£5.3380
Rev-Margin DCF£2.52£3.60£4.7673
Economic Profit
Residual Income£1.23£1.32£1.4776
ROIC Compounder£1.79£2.11£2.4672
Growth Earnings
Growth-Adj P/E£1.53£2.19£2.8467
The fair value above starts from this blend and is adjusted for a year distorted by one-off effects.
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.84/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+25.0%
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.
+13.1%
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.
+13.5%
Start year 2021 (pandemic). Over 10 years: +5.0% a year
Revenue growth 40 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.
+3.9%
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What shareholders gained per year (last 5 years) ⓘ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.
+9.5%
Earnings growth per share plus dividend.
Earnings per share, growth per year+8.5%
Dividend (yield on the price)1.0%
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.8.5% vs −6.3%, picking up
Profit margin 2021 to 2026 ⓘ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.0% → 3%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes less growth than the company has delivered so far and more than analysts expect.
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).
+9.7%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+5.7%
Yearly sales growth analysts expect, extended to five years.
After inflation (UK: IMF forecast 2.3% a year to 2030, 3.3% from 2016 to 2025) that is about +7.2% a year for the price and +3.3% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (98 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Very negative
AI conclusion: Limited durable moat and persistently low profitability metrics stand out as the central weakness amid intense retail competition, while food-range expansion paired with targeted partnerships forms the main strength.
Main risk: Ultra-fast fashion platforms such as Shein and Temu could draw clothing customers away with lower prices and rapid trend cycles enabled by direct-from-China models and import loopholes, pressuring M&S non-food margins and sales.
Bull case: M&S could counter fast-fashion pressure by deepening its Sephora beauty partnerships and food focus while optimising sites for AI agents to capture recommendations and maintain customer traffic through unique in-store experiences.
Bear case: If Shein and Temu accelerate UK gains and agentic AI bypasses traditional retailers, M&S clothing and home sales could erode further, forcing greater reliance on food while non-food recovery stalls amid persistent cost and visibility challenges.
Marks and Spencer keeps expanding its food range with new products and waste reduction efforts while reshaping the non-food side through targeted partnerships. The Sephora deal will place branded beauty areas in 100 stores from next spring to reach younger customers. Does this move mainly strengthen the resilient food business by increasing store visits or does it risk diverting focus from fixing clothing and home performance?
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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.Department Stores · 108 stocks
Beats the industry median on 6/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score59 · Above median
Fair Value upside−5.2% · Below median
Profitability
Return on equity (12 months)7.8% · Above median
Return on assets2.6% · Above median
Net margin (12 months)1.5% · Below median
Operating margin (12 months)2.5% · Below median
Growth and dividend
Revenue growth (quarter YoY)27.2% · Top 25%
Dividend yield (12 months)1.0% · Bottom 25%
Balance sheet
Debt / equity0.22× · Above median
Valuation Multiplesvs Department Stores median · lower = cheaper
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Cite: Fair Value Calculator (2026). "Marks and Spencer Group PLC Fair Value". https://www.fairvalue-calculator.com/stock/MKS
Frequently asked questions
Is Marks and Spencer Group PLC (MKS) overvalued or undervalued?
As of Nov 3, 2026, our model estimates a fair value of £4.21 versus a price of £4.44, about 5% lower (fairly valued).
What is the fair value of MKS?
Our model-based fair value for Marks and Spencer Group PLC is £4.21 (as of Nov 3, 2026), built from audited fundamentals. The current price: £4.44.
What is the quality score of MKS?
Marks and Spencer Group PLC has a Quality Score of 59/100. 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 Marks and Spencer Group PLC (MKS)?
Our model-based price target is the fair value of £4.21 (as of Nov 3, 2026) from 25 valuation models. Cautious scenario £3.16, optimistic scenario £5.26. It is a calculation from audited fundamentals, not an analyst target.
What is the Marks and Spencer Group PLC stock forecast for 2026?
Our models put fair value at £4.21, about 5% lower versus a price of £4.44 (fairly valued). Cautious scenario £3.16, optimistic scenario £5.26. The calculation is refreshed regularly with new filings.
What is the revenue of Marks and Spencer Group PLC (MKS)?
Marks and Spencer Group PLC reported trailing-twelve-month revenue of about £17.3B (latest available figure, as of Nov 3, 2026).
Does Marks and Spencer Group PLC pay a dividend?
Marks and Spencer Group PLC currently shows a dividend yield of 0.99% relative to its recent price (as of Nov 3, 2026).
What growth is priced into Marks and Spencer Group PLC (MKS)?
For today's price to be fair in a discounted-cash-flow model, Marks and Spencer Group PLC would have to grow free cash flow by +9.7 % per year for five years (discount rate 9.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +13.5 % per year. As of Nov 3, 2026.
What discount rate (WACC) does the fair value of MKS use?
Our models discount Marks and Spencer Group PLC at 9.8 %: a base by market capitalisation (large), damped by beta 1.00, country premium for United Kingdom. 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 Marks and Spencer Group PLC that is +9.7 % per year a year over ten years, using the same discount rate (9.8 %) and the same formula as our fair value.
How much growth has Marks and Spencer Group PLC (MKS) delivered so far?
Over the past 5 years revenue at Marks and Spencer Group PLC grew +13.5 % a year. The price currently implies +9.7 % 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 Marks and Spencer Group PLC (MKS) growing?
The median revenue growth in the sector is +4.6 % a year. That is the yardstick for the growth priced into Marks and Spencer Group PLC (+9.7 % 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 Marks and Spencer Group PLC (MKS)?
The free-cash-flow yield on the price is 4.83 %: that much free cash flow Marks and Spencer Group PLC produces per unit of market value. When it exceeds the discount rate of our models (9.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Marks and Spencer Group PLC (MKS)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Marks and Spencer Group PLC it is £4.21 per share (as of Nov 3, 2026), against a price of £4.44. It is the blended result of 25 valuation models (cash flow, earnings, asset, dividend).
Is Marks and Spencer Group PLC stock overvalued or undervalued in 2026?
As of Nov 3, 2026, MKS trades above its calculated fair value: price £4.44, fair value £4.21, a gap of about −5% (fairly valued). 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 MKS?
No. The price is what the market pays today (£4.44); the fair value is what the company's own numbers justify (£4.21). For Marks and Spencer Group PLC the two are £0.2313 per share apart. That gap is exactly why we show both numbers side by side.
How much is Marks and Spencer Group PLC worth?
The market values Marks and Spencer Group PLC at about £9.4B (market capitalisation, as of Nov 3, 2026). Per share that is £4.44; our models calculate a fair value of £4.21 per share.
What do the bullish and bearish scenarios say about MKS?
Our models span a range for Marks and Spencer Group PLC: cautious scenario £3.16, base £4.21, optimistic £5.26 per share (as of Nov 3, 2026, price £4.44). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of MKS?
Marks and Spencer Group PLC trades at a price-to-earnings ratio of 37.0 (as of Nov 3, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of £4.21 is built from several models across several years. Median P/E at fiscal year-end, 9 fiscal years (2017 to 2026), reported earnings: 27.7. Other multiples: PEG 0.6, P/B 3.1, P/S 0.5, EV/EBITDA 11.2.
What is the PEG ratio of MKS?
The PEG ratio of Marks and Spencer Group PLC is 0.62 (P/E divided by earnings growth, as of Nov 3, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Marks and Spencer Group PLC (MKS)?
Balance-sheet figures for Marks and Spencer Group PLC (as of Nov 3, 2026): return on equity 7.8%, debt of 0.22 per unit of equity. They feed the Quality Score of 59/100, which measures business quality independently of the share price.
How far is MKS from its 52-week high?
Marks and Spencer Group PLC trades at £4.44, at its 52-week high of £4.44 and 45% above the low of £3.06 (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of £4.21 is for.
Which stocks are comparable to Marks and Spencer Group PLC?
From the same area (Consumer Cyclical) we also value Falabella S.A, Dillard's, Inc, 99 Speed Mart Retail Holdings, Macy's, Inc, 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 Marks and Spencer Group PLC stock attractive at the current price?
The data as of Nov 3, 2026: price £4.44, calculated fair value £4.21 (−5%), Quality Score 59/100, from 25 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 MKS calculated?
We run Marks and Spencer Group PLC through 25 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 £4.21, 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 15.5% above its aggregate fair value. Marks and Spencer Group PLC itself currently trades above fair value. 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 Marks and Spencer Group PLC (MKS)?
The closing price on Nov 5, 2026 was £4.44. Our model-based fair value is £4.21, about 5% lower (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Marks and Spencer Group PLC right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. The price sits in the upper half of our model range, so the margin of safety is thin. Read the verdict with care: some models are missing inputs, so the estimate scatters more than usual.
Where does the earnings growth of Marks and Spencer Group PLC (MKS) come from?
Earnings per share at Marks and Spencer Group PLC grew −2.4 % a year from 2015 to 2026. Broken into its drivers: revenue per share +1.6 %, EBIT margin −1.8 %, tax rate −2.6 %, residual (interest, one-offs) +0.4 %. 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 Marks and Spencer Group PLC
How large is the market capitalisation of Marks and Spencer Group PLC (MKS)?
The market capitalisation of Marks and Spencer Group PLC is £9.4B. 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 Marks and Spencer Group PLC (MKS)?
The price-to-sales ratio of Marks and Spencer Group PLC is 0.54 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Marks and Spencer Group PLC (MKS)?
Earnings per share at Marks and Spencer Group PLC are £0.1200 (price ÷ EPS = P/E 37.0). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Marks and Spencer Group PLC (MKS)?
The dividend yield of Marks and Spencer Group PLC is 1.0% (payout 36.7%). 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 Marks and Spencer Group PLC (MKS)?
The net margin of Marks and Spencer Group PLC is 1.5% (last twelve months). 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 Marks and Spencer Group PLC (MKS)?
The return on equity (ROE) of Marks and Spencer Group PLC is 7.8% (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 Marks and Spencer Group PLC (MKS)?
On an EBIT basis the return on assets of Marks and Spencer Group PLC is 6.4% (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 Marks and Spencer Group PLC (MKS)?
The operating margin of Marks and Spencer Group PLC is 2.5% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Marks and Spencer Group PLC (MKS)?
Revenue at Marks and Spencer Group PLC is growing +27.2% versus a year earlier (3y avg +13.1%). 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 Marks and Spencer Group PLC (MKS)?
Earnings per share at Marks and Spencer Group PLC are growing +17.6% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Marks and Spencer Group PLC (MKS) carry?
The net debt of Marks and Spencer Group PLC is £2.4B (fiscal year 2026, ≈ 5.3 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Nov 3, 2026