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Marks and Spencer Group (MKS) Fair Value & Analysis

Consumer Cyclical · GB · Market cap 7.8B GBX

MA Marks and Spencer Group MKS · LSE
Price£3.79
Fair Value£4.24
Upside+11.9%
Quality61/100
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Healthy Growth
Thin margins · 1.5% net margin
Low debt · generates free cash flow
1.13% dividend yield
Mixed vs. peers (6/15)
Narrow moat 32/100
Evidence: High Range £3.17 – £5.29 Share as image

Fair value as of: Jul 19, 2026

From 25 valuation models · updated 19 days ago

Fair value updated Jul 19, 2026, revised from £2.82 to £4.24 (+50.4%) since Jun 24, 2026. Share price +6.1% over the past month.

A solid business, screening 12% undervalued on our models.

What matters now

  • Our model range runs from £3.17 (bear) to £5.29 (bull), base £4.24. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 61/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

£3.83 £0.8423 Fair Value £4.24 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range £0.8423 – £3.83 · fair‑value band £3.17 – £5.29 · the £3.79 price screens below the £4.24 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

Marks and Spencer Group (MKS) currently trades at £3.79, while our model-based Fair Value estimate is £4.24, implying the stock looks roughly 11.9% undervalued today. We read business quality at 61/100 (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, Marks and Spencer Group generated revenue of £17.3B at a net margin of 1.5%. Revenue grew 27.2% year over year. It earns a return on equity of 7.7%. Net debt stands at £2.4B. Fundamentals as of Jul 19, 2026

Our scenario range runs from £3.17 (bear case) to £5.29 (bull case); at £3.79, 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. 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. For context, the median of 10 Consumer Cyclical peers we cover trades at 23% fair-value upside, at 12%, MKS screens richer 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 £2.43 £3.25 £4.29 80
Residual Income £1.24 £1.33 £1.54 76
Rev-Margin DCF £2.29 £3.35 £4.48 74
All 25 models by family
DCF Models
FCF DCF £2.37 £3.24 £4.41 38
Owner Earnings £1.80 £2.44 £3.31 31
5Y Revenue Exit £2.29 £3.33 £4.59 39
5Y EBITDA Exit £3.95 £6.26 £8.83 41
5Y P/E Exit £2.03 £2.87 £3.69 38
10Y Revenue Exit £2.24 £3.15 £4.26 36
10Y EBITDA Exit £3.31 £5.08 £7.25 37
10Y P/E Exit £2.14 £2.85 £3.63 35
Earnings-Based
Graham-Dodd £0.8600 £1.88 £2.39 54
PEG = 1.0 £0.3000 £0.4200 £0.5500 46
EPV £1.81 £2.07 £2.29 59
Dividend Discount
Gordon GGM £0.3300 £0.5100 £0.6900 70
DDM Multi-Stage £0.3300 £0.4700 £0.6200 61
Multiples
P/E Multiple £1.89 £2.52 £3.16 63
P/S Multiple £1.61 £2.15 £2.68 58
P/B Multiple £1.61 £2.15 £2.68 55
EV/EBIT £3.45 £4.54 £5.64 53
EV/EBITDA £5.62 £7.44 £9.26 54
EV/Revenue £2.38 £3.33 £4.28 43
Asset-Based
NCAV (Graham) £0.7400 £1.00 £1.49 50
Growth DCF
Growth DCF £2.43 £3.25 £4.29 80
Rev-Margin DCF £2.29 £3.35 £4.48 74
Economic Profit
Residual Income £1.24 £1.33 £1.54 76
ROIC Compounder £1.84 £2.19 £2.57 72
Growth Earnings
Growth-Adj P/E £1.41 £2.01 £2.62 68

Widest divergence: Growth DCF (£3.25) versus Dividend Discount (£0.4700). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 17.3B GBX
Revenue growth (YoY) +27.2%
Net margin 1.5%
Return on equity 7.8%
Free cash flow 453M GBX FY2026
P/E ratio 31.6
More key figures
Operating margin 2.5%
EPS (TTM) £0.1200
Dividend yield 1.1%
EPS growth (YoY) +1,760%
Net debt 2.4B GBX FY2026

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 61/100

Of which business quality 58 · Market factors (momentum, volatility) 65

Profitability 55
Margins and returns on capital today
Quality Growth 51
Are margins and returns improving?
Cashflow 43
Earnings quality: real cash, not paper profit
Fin. Strength 56
Balance sheet, leverage, solvency risk
Investment 87
Disciplined investing over empire-building
Low Volatility 64
Calm price path (market factor)
Momentum 59
Price trend over the last 3–12 months (market factor)
52W Momentum 77
Distance to the 52-week high (market factor)
Net Issuance 74
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

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.

Full company description

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. 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.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Marks and Spencer Group 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.

Growth Quality 84/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
£17.3B
Latest YoY
+25.0%
Avg. growth/yr (3Y)
+13.1%
Avg. growth/yr (5Y)
+13.5%
Avg. growth/yr (40Y)
+3.9%
Revenue +12.2%/yr
FY22 £10.9B
FY23 £11.9B
FY24 £13.0B
FY25 £13.8B
FY26 £17.3B
Net income −4.1%/yr
FY22 £307M
FY23 £363M
FY24 £431M
FY25 £296M
FY26 £259M

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Cite: Fair Value Calculator (2026). "Marks and Spencer Group Fair Value". https://www.fairvalue-calculator.com/stock/MKS

Peer Group

Department Stores · 129 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 61 · Top 25%
Fair Value upside +12% · Above median
Return on equity (TTM) 8% · Above median
Return on assets 3% · Above median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 3% · Below median
Revenue growth 27% · Top 25%
Dividend yield (TTM) 1.1% · Below median
Debt / equity 0.22× · Higher than median

Valuation Multiples vs Department Stores median · lower = cheaper

P/E (TTM) 31.6× · Pricier than median
P/B 3.43× · Pricier than 75% of peers
P/S (TTM) 0.61× · Pricier than median
P/FCF 23.1× · Pricier than 75% of peers
EV/EBITDA 12.6× · Pricier than 75% of peers
PEG 0.63× · Cheaper than 75% of peers

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 49 · sector 26
FUTURE 100 · sector 1
PAST 31 · sector 14
HEALTH 89 · sector 96
DIVIDEND 23 · sector 37

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 Department Stores stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
Falabella S.A FALABELLA 5,875 CLP 8,880 CLP +51%
El Puerto de Liverpool, S.A. LIVEPOLC1 99.62 MXN 263.70 MXN +165%
99 Speed Mart Retail Holdings 5326 3.70 MYR 1.45 MYR -61%
Cencosud S.A CENCOSUD 2,040 CLP 2,516 CLP +23%
Vishal Mega Mart Limited VMM ₹113.94 ₹37.39 -67%
Yonghui Superstores Co 601933 ¥3.01 ¥1.62 -46%
SHINSEGAE Inc 004170 610,000 KRW 200,259 KRW -67%
Organización Soriana, S. A. B. de C. V., SORIANAB 30.04 MXN 59.59 MXN +98%
Lotte Shopping Co 023530 155,300 KRW 81,725 KRW -47%
Lojas Renner S.A LREN3 R$14.10 R$33.36 +137%

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Frequently asked questions

Is Marks and Spencer Group (MKS) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of £4.24 versus a price of £3.79, about +12% (undervalued).
What is the fair value of MKS?
Our model-based fair value for Marks and Spencer Group is £4.24 (as of Jul 19, 2026), built from audited fundamentals. The current price is £3.79.
What is the quality score of MKS?
Marks and Spencer Group has a Quality Score of 61/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Marks and Spencer Group (MKS)?
Marks and Spencer Group reported trailing-twelve-month revenue of about £17.3B (latest available figure, as of Jul 19, 2026).
What is the net profit margin of MKS?
The net profit margin of Marks and Spencer Group is about 1.5%, meaning it keeps roughly 1.5% of revenue as net income. Based on the latest reported figures.
Does Marks and Spencer Group pay a dividend?
Marks and Spencer Group currently shows a dividend yield of about 1.18% relative to its recent price (as of Jul 19, 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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