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Palace Capital plc (PCA) Fair Value & Analysis

Real Estate · GB · Market cap 35.0M GBX

PC Palace Capital plc PCA · LSE
Price£1.80
Fair Value£0.5700
Upside-68.3%
Quality55/100
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Weak Growth
Highly profitable · 28.8% net margin
Low debt · negative free cash flow
8.02% dividend yield
Trails peers (2/13)
Narrow moat 37/100
Evidence: Low Range £0.3700 – £0.7100 Share as image

Fair value as of: Jul 17, 2026

From 1 valuation models · updated 24 days ago

Fair value updated Jul 17, 2026, revised from £2.61 to £0.5700 (−78.2%) since Jun 26, 2026. Share price −2.2% over the past month.

A solid business, but screening 68% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (£0.7100). The favourable scenario is already priced in.
  • 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 but not exceptional quality (55/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (£0.3700 to £0.7100) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

£2.32 £1.57 Fair Value £0.5700 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range £1.57 – £2.32 · fair‑value band £0.3700 – £0.7100 · the £1.80 price screens above the £0.5700 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 17, 2026.

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Analysis

Palace Capital plc (PCA) currently trades at £1.80, while our model-based Fair Value estimate is £0.5700, implying the stock looks roughly 68.3% overvalued today. The Quality Score stands at 55/100 (solid quality), in the Real Estate sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: low).

Over the trailing twelve months, Palace Capital plc generated revenue of £9.2M at a net margin of 28.8%. Revenue declined 50.1% year over year. It earns a return on equity of 4.3%. The balance sheet holds a net cash position of £12.8M. Fundamentals as of Jul 17, 2026

Our scenario range runs from £0.3700 (bear case) to £0.7100 (bull case); at £1.80, the current price sits above 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 Real Estate peers we cover trades at -22% fair-value upside, at -68%, PCA 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 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
NCAV (Graham) £1.09 £1.46 £2.19 50
All 1 models by family
Asset-Based
NCAV (Graham) £1.09 £1.46 £2.19 50

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Key figures & financial health

Revenue (TTM) 9.2M GBX
Revenue growth (YoY) -50.1%
Net margin 28.8%
Return on equity 4.3%
Free cash flow −5.0M GBX FY2026
P/E ratio 21.1
More key figures
Operating margin -18.7%
EPS (TTM) £0.0800
Dividend yield 9.0%
EPS growth (YoY) +918%
Net cash 12.8M GBX FY2026

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 55/100

Of which business quality 52 · Market factors (momentum, volatility) 40

Profitability 2
Margins and returns on capital today
Quality Growth 10
Are margins and returns improving?
Cashflow 27
Earnings quality: real cash, not paper profit
Fin. Strength 98
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 76
Calm price path (market factor)
Momentum 29
Price trend over the last 3–12 months (market factor)
52W Momentum 19
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

Palace Capital plc is a real estate investment firm specializing in investment in entities operating in the property sector. It seeks to invest in United Kingdom. Palace Capital plc 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

Palace Capital plc reported revenue of £7.6M in FY2026 versus £49.1M in FY2022, a compound −37.3%/yr. Reported net income was −£5.1M in FY2026.

Growth Quality 19/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
£7.6M
Latest YoY
−42.6%
Avg. 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.
−38.7%
Avg. 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.
−15.2%
Avg. growth/yr (20Y) 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.
+56.3%
Revenue −37.3%/yr
FY22 £49.1M
FY23 £33.0M
FY24 £19.6M
FY25 £13.2M
FY26 £7.6M
Net income
FY22 £24.5M
FY23 −£35.7M
FY24 −£9.4M
FY25 £1.4M
FY26 −£5.1M

PCA screens 68% overvalued. Compare with Goodman Group →

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Cite: Fair Value Calculator (2026). "Palace Capital plc Fair Value". https://www.fairvalue-calculator.com/stock/PCA

Peer Group

REIT - Diversified · 165 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 52 · Below median
Fair Value upside −68% · Bottom 25%
Return on equity (TTM) 4% · Below median
Return on assets -0% · Bottom 25%
Net margin (TTM) 29% · Below median
Operating margin (TTM) -12% · Bottom 25%
Revenue growth -31% · Bottom 25%
Dividend yield (TTM) 8.0% · Top 25%

Valuation Multiples vs REIT - Diversified median · lower = cheaper

P/E (TTM) 21.1× · Pricier than 75% of peers
P/B 1.11× · Pricier than median
P/S (TTM) 5.15× · Pricier than median
EV/EBITDA 16.0× · 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 0 · sector 13
FUTURE 0 · sector 13
PAST 17 · sector 20
HEALTH 100 · sector 72
DIVIDEND 100 · sector 97

VALUE 0: the price sits above our fair-value range.

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 REIT - Diversified stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
Goodman Group GMG A$29.11 A$7.37 -75%
VICI Properties Inc VICI $26.73 $41.74 +56%
W. P. Carey Inc WPC $76.69 $35.59 -54%
Charter Hall Group CHC A$21.90 A$11.46 -48%
Fibra Uno FUNO11 31.10 MXN 63.56 MXN +104%
COV COV €52.55 €62.39 +19%
The GPT Group GPT A$4.89 A$3.49 -29%
Mirvac Group MGR A$1.70 A$0.5700 -66%
KLCC Property Holdings 5235SS 8.85 MYR 6.91 MYR -22%
CRRUN CRRUN C$17.65 C$17.89 +1%

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Frequently asked questions

Is Palace Capital plc (PCA) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of £0.5700 versus a price of £1.80, about −68% (overvalued).
What is the fair value of PCA?
Our model-based fair value for Palace Capital plc is £0.5700 (as of Jul 17, 2026), built from audited fundamentals. The current price is £1.80.
What is the quality score of PCA?
Palace Capital 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 Palace Capital plc (PCA)?
Palace Capital plc reported trailing-twelve-month revenue of about £9.2M (latest available figure, as of Jul 17, 2026).
What is the net profit margin of PCA?
The net profit margin of Palace Capital plc is about 28.8%, meaning it keeps roughly 28.8% of revenue as net income. Based on the latest reported figures.
Does Palace Capital plc pay a dividend?
Palace Capital plc currently shows a dividend yield of about 8.98% relative to its recent price (as of Jul 17, 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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