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Mothercare PLC (MTC) Fair Value & Analysis

Consumer Cyclical · GB · Market cap 3.9M GBX · ISIN GB0009067447

What is Mothercare PLC really worth?

MP Mothercare PLC MTC · LSE
Price£0.0071
Fair Value£0.0082
Upside+16.3%
Quality58/100

A solid business, trading 14% below our fair value of £0.0082.

As of Aug 13, 2026, the fair value of Mothercare PLC is £0.0082 per share against a price of £0.0071, so the fair value sits 16% above the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Strengths

Highly profitable · 21.4% net margin
Ranks above peers (7/10)

Risks

!Mixed Growth (revenue 5y −33.9 %/yr)
!Negative equity (buybacks among others) · negative free cash flow
!Moderate moat 49/100
!Evidence only low, so the estimate is less certain
Evidence: Low Range £0.0081 – £0.0084

Fair value as of: Aug 13, 2026

From 11 valuation models · updated 23 days ago

Fair value updated Aug 13, 2026, revised from £0.0069 to £0.0082 (+18.9%) since Jul 19, 2026.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price is below even our cautious bear case (£0.0081). The market is more pessimistic than our downside scenario.
  • The models converge in a tight band (£0.0081 to £0.0084), unusually little disagreement for a valuation.
  • Evidence is limited here (fewer models, shorter history), so the fair value is a rougher estimate than usual.

Price vs Fair Value (5 years)

£0.1970 £0.0061 Fair Value £0.0082 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range £0.0061 – £0.1970 · fair‑value band £0.0081 – £0.0084 · the £0.0071 price screens below the £0.0082 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Mothercare PLC (MTC) currently trades at £0.0071, while our model-based Fair Value estimate is £0.0082, implying the stock looks roughly 14.0% undervalued today. The Quality Score stands at 58/100 (solid quality), in the Consumer Cyclical sector. Bull case: the Multiples group reads highest at a median of £0.0082 per share, and 3 of the 11 models we run sit above the £0.0071 price. Bear case: the Earnings-Based group reads lowest at £0.0031, and 8 of the 11 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, Mothercare PLC generated revenue of £29.5M at a net margin of 21.4%. Revenue declined 44.8% year over year. Net debt stands at £4.5M. The stock trades on a trailing P/E of 0.7. Fundamentals as of Aug 13, 2026

Our scenario range runs from £0.0081 (bear case) to £0.0084 (bull case); at £0.0071, 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 −11% fair-value upside, at 16%, MTC screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 12 months have passed since. In that time the company retained roughly £0.0100 per share, which is 122.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
EPV best evidence £0.0048 £0.0052 £0.0058 74
ROIC Compounder £0.0048 £0.0052 £0.0058 72
Gordon GGM £0.0052 £0.0055 £0.0058 69
All 11 models by family
Earnings-Based
Graham-Dodd £0.0024 £0.0031 £0.0034 67
EPV best evidence £0.0048 £0.0052 £0.0058 74
Dividend Discount
Gordon GGM £0.0052 £0.0055 £0.0058 69
DDM Multi-Stage £0.0052 £0.0058 £0.0069 67
Multiples
P/E Multiple £0.0062 £0.0082 £0.0103 63
P/S Multiple £0.0021 £0.0027 £0.0034 58
EV/EBIT £0.0134 £0.0179 £0.0223 66
EV/EBITDA £0.0100 £0.0131 £0.0161 67
EV/Revenue £0.0024 £0.0031 £0.0041 54
Economic Profit
ROIC Compounder £0.0048 £0.0052 £0.0058 72
Growth Earnings
Growth-Adj P/E £0.0045 £0.0062 £0.0082 67

Widest divergence: Multiples (£0.0082) versus Earnings-Based (£0.0031). Highest evidence: EPV (74).

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Key figures & financial health

P/E ratio 0.7
P/S ratio 0.11 P/E × margin
EPS (TTM) £0.0100 price ÷ EPS = P/E 0.7
Net margin 15.9% FY2025
Return on assets (EBIT) 26.3% avg 5y
Operating margin −6.0% TTM
More key figures
Growth
Revenue (TTM) £29.5M TTM
Revenue growth (YoY) −44.8% 3y avg −22.2%
EPS growth (YoY) +382%
Balance sheet & cash flow
Free cash flow −1.5M GBX FY2025
Net debt 4.5M GBX FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 58/100

Of which business quality 56 · Market factors (momentum, volatility) 20

Profitability 90
Margins and returns on capital today
Quality Growth 56
Are margins and returns improving?
Cashflow 36
Earnings quality: real cash, not paper profit
Fin. Strength 28
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 48
Calm price path (market factor)
Momentum 12
Price trend over the last 3–12 months (market factor)
52W Momentum 2
Distance to the 52-week high (market factor)
Net Issuance 41
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Mothercare plc, through its subsidiaries, operates as a specialist franchisor of products for parents and young children under the Mothercare brand. The company provides clothing, footwear, home and travel products, and toys. It operates through Mothercare stores, as well as online stores under the Mothercare brand.

Full company description

Mothercare plc, through its subsidiaries, operates as a specialist franchisor of products for parents and young children under the Mothercare brand. The company provides clothing, footwear, home and travel products, and toys. It operates through Mothercare stores, as well as online stores under the Mothercare brand. Mothercare plc was founded in 1961 and is headquartered in Hemel Hempstead, the United Kingdom.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Mothercare PLC reported revenue of 38.9M GBX in FY2025 versus 85.8M GBX in FY2021, a compound −17.9%/yr. Reported net income was 6.2M GBX in FY2025.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
£38.9M
Avg. revenue 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.
−23.7%
Avg. revenue 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.
−33.9%
Avg. revenue growth/yr (37Y) 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.
−7.0%
Value creation/yr (3Y) Earnings growth per share (CAGR 3 years) plus dividend yield: value created per share and year.
−25.2% · in GBP
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share−25.2%
Dividend yield0.0%
Operating margin (EBIT) 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.−0.7% (2020) → 41.1% (2025) · rising
Worst earnings drop1,135% (2018) (loss year, drop beyond 100%) · in GBP
⚠ Revenue per share shrinking 33.5%/yr over ~10Y (margin trend unclear) Structural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Revenue −17.9%/yr
FY21 85.8M GBX
FY22 82.5M GBX
FY23 73.1M GBX
FY24 56.2M GBX
FY25 38.9M GBX
Net income
FY21 −21.5M GBX
FY22 12.1M GBX
FY23 −100K GBX
FY24 3.3M GBX
FY25 6.2M GBX

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Cite: Fair Value Calculator (2026). "Mothercare PLC Fair Value". https://www.fairvalue-calculator.com/stock/MTC.LSE

Peer Group

Specialty Retail · 218 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 58 · Above median
Fair Value upside +17% · Above median
Return on assets 39% · Top 25%
Net margin (TTM) 21% · Top 25%
Operating margin (TTM) −6% · Bottom 25%
Revenue growth −45% · Bottom 25%

Valuation Multiples vs Specialty Retail median · lower = cheaper

P/E (TTM) 0.7× · Cheaper than 75% of peers
P/S (TTM) 0.18× · Cheaper than 75% of peers

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE56 · sector 31
FUTURE0 · sector 25
PAST0 · sector 27
HEALTH100 · sector 96
DIVIDEND0 · sector 58

PAST 0: with negative equity (buybacks among others) return on equity is not meaningfully computable.

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

Similar stocks

10 more Specialty Retail stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Alimentation Couche-Tard Inc ATD C$89.93 C$104.32 +16%
Casey's General Stores, Inc CASY $755.47 $398.90 −47%
Williams-Sonoma, Inc WSM $235.09 $162.63 −31%
Ulta Beauty, Inc ULTA $537.10 $475.40 −11%
DICK'S Sporting Goods, Inc DKS $139.15 $233.87 +68%
Best Buy Co BBY $82.44 $108.04 +31%
China Tourism Group 601888 ¥54.97 ¥40.40 −27%
Tractor Supply Company TSCO $34.72 $35.52 +2%
Five Below, Inc FIVE $259.41 $117.29 −55%
Murphy USA Inc MUSA $574.12 $423.35 −26%

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Frequently asked questions

Is Mothercare PLC (MTC) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of £0.0082 versus a price of £0.0071, about +16% upside (undervalued).
What is the fair value of MTC?
Our model-based fair value for Mothercare PLC is £0.0082 (as of Aug 13, 2026), built from audited fundamentals. The current price: £0.0071.
What is the quality score of MTC?
Mothercare PLC has a Quality Score of 58/100. 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 Mothercare PLC (MTC)?
Our model-based price target is the fair value of £0.0082 (as of Aug 13, 2026) from 11 valuation models. Cautious scenario £0.0081, optimistic scenario £0.0084. It is a calculation from audited fundamentals, not an analyst target.
What is the Mothercare PLC stock forecast for 2026?
Our models put fair value at £0.0082, about +16% upside versus a price of £0.0071 (undervalued). Cautious scenario £0.0081, optimistic scenario £0.0084. The calculation is refreshed regularly with new filings.
What is the revenue of Mothercare PLC (MTC)?
Mothercare PLC reported trailing-twelve-month revenue of about £29.5M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of MTC?
The net profit margin of Mothercare PLC is about 21.4%, meaning it keeps roughly 21.4% of revenue as net income. Based on the latest reported figures.
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